No Impact From Retail Sales, “Finely Balanced” Discussions Continue

SONA futures are flat to +1.5, with an uptick in Bunds lending support in early Friday trade.

• BoE-dated OIS is little changed on the day, showing ~14bp of easing through the Aug MPC, ~22.bp of cuts through the Sep gathering and ~48bp through year end.
• Most of yesterday’s post-BoE dovish adjustment has stuck, with focus on the confirmation that yesterday’s decision was “finely balanced” for some MPC members remaining evident.
• Little lasting impact when it comes to the firmer-than-expected UK retail sales print. The volatile data series isn’t expected to impact monetary policy.
• Elsewhere, the GfK consumer confidence index moved to the highest level seen in around two and a half years, although remains in negative territory. There may be an element of election-linked hope in the latest uptick The release shouldn’t be a market mover.
• Flash PMI data headlines the UK calendar during the remainder of the day.