Blog


All eyes on BoE meeting this afternoon

Sterling remained below seven-month highs against the dollar this morning, as investors waited for UK economic data and a Bank of England interest rate decision and inflation report due later in the day, neither of which is expected to indicate a change in bank policy.

A quieting of global market volatility and developments on its talks on leaving the European Union have helped the pound since it gained 3 percent gain on Prime Minister Theresa May’s announcement of a June 8 parliamentary election last month.

Sterling has also struggled to climb past $1.30, and there was little confidence among dealers of a signal from the Bank of England on Thursday that would send it higher, even as inflation tops the bank’s 2 percent target.

The BoE is expected to leave record-low interest rates unchanged. Brexit, a national election and mixed economic data are likely to leave the Bank seeking more clarity before it raises rates for the first time in nearly a decade.

Despite 1Q2017 GDP growth disappointing the BoE’s forecasts, the focus today will be on whether anyone joins Kristin Forbes in voting for a hike.
After Charlotte Hogg’s resignation, there are only 8 members on the MPC (Monetary Policy Committee) now, meaning we are likely to see a 7-1 vote for unchanged policy. A 6-2 vote, with perhaps Michael Saunders voting for a hike, would be a surprise and would lift sterling.

Leave a Reply

Your email address will not be published. Required fields are marked *

twenty − 6 =

What's Going On?

Currencies 4 You Limited is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House, Victory Way, Admirals Park, Crossway Dartford, DA2 6QD. Currencies 4 You's Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Ltd is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. Reference number: 900797. Ebury Partners UK Ltd is registered with the Information Commissioners Office, with registration number: Z209673X | Terms and Conditions | Privacy Statement | Careers