In terms of trading, the British pound has had a good year. The economists of ING discuss the outlook ahead of Thursday’s Bank of England meeting.
An expected 25 bp hike amid hawkish rhetoric likely won’t be a game-changer.
A Bank of England rate hike of 25 basis points amid hawkish rhetoric seems unlikely to be a game-changer for the Pound. That said, a surprise pause would have a big impact on the British currency.
And while the Bank of England may try to market a pause as a “jump” by the Fed, the market would doubt that the Bank of England would be in a position to raise rates later in the year. A pause from the Bank of England could push the British pound below the May lows, just above 1.2300.
Source: Fx Street
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