DAVY VIEW

The fallout from the sale of Credit Suisse and the write down of its AT1 bonds looks set to create fresh uncertainty for markets today. In this context, the Bank of England is far more likely to take a wait and see approach at Thursday’s (March 23rd) policy meeting, holding rates at 4%. However, much will depend on Wednesday’s UK CPI inflation release, which could well show signs of more persistent than expected core inflation price pressures.