BoE rate decision: No fireworks expected – Lloyds Bank

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Hann-Ju Ho, Senior Economist at Lloyds Bank, expects the Bank of England to leave rates unchanged today, but the simultaneous publication of the meeting minutes and the vote split will provide a ready sense of how the perceived balance of risks is shifting in the eyes of the MPC.

    Key Quotes

    “The Blue Book revisions for the latest GDP estimates revised lower the most recent growth momentum and, by implication, suggest less productivity growth and therefore stronger cost pressures. This raises the risk that another MPC member may join Ian McCafferty in voting for an immediate rate rise, supported also by sterling’s fall over the past month which would help to ease deflation concerns.”

    “On balance, though, we believe an unchanged 8-1 vote split is the most likely outcome. With anxieties about the external backdrop providing an offset, scheduled MPC appearances in Lima this evening include Governor Carney and Deputy Governor Shafik.”
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