Week Ahead: Bailey at Jackson Hole the Highlight

Last week saw surprises in both retail sales (stronger than expected) and inflation (higher than expected as more firms pass on Covid-related costs). The week ahead will see UK data take a back seat with the main event of the week a speech by Bank of England Governor Andrew Bailey at the virtual Jackson Hole Symposium event on Friday. Bailey's speech will likely be less closely watched than Fed Chair Jay Powell, who is expected to give further details on the Fed's framework including possibly moving to an average inflation targeting regime. However, the speech will still be followed as to whether there are any hints as to whether and by how much QE will be expanded later this year as well as any comments on the path of monetary policy normalisation in the UK – whether the UK would reverse QE or begin to raise rates first.

For the full document including auction previews, QE tracker and issuance calendars see the Gilt Week Ahead.