Bank of England is the least likely to surprise – BBH

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Research Team at BBH, expects that the BoE will keep policy is on hold though there may still be one (and only one) MPC member that is resisting, favouring a hike in its upcoming meet.

    Key Quotes

    “There have been four macro-developments for the MPC to consider. There has been a further drop in the price of oil. There is more confidence that the Fed will hike rates this month. The ECB eased. Sterling had appreciated 4% on a broad trade-weighted measure from the mid-October through mid-November. The consolidation gave way to a pullback, leaving sterling still about 2% higher.”

    “Earlier this year, there were times when the market seemed more confident of a BOE rate hike than a Fed hike. Now it is quite a different story. By the time the BOE delivers its first hike, the Fed, even in a gradual mode, may already have lifted the interest rate target by 50-75 bp.”
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