BOE’s monetary policy preview

Bank of England (BOE) is scheduled to announce its monetary policy at 12:00 GMT, will release minutes of meeting along with.

Pound is heading higher ahead of monetary policy announcement and is best performing major today and this week so far. Pound is currently trading at 1.518 against Dollar.

Bank of England (BOE) seriously scaled back its inflation and well as rate hike expectations over last meeting or so. So next year could very well be a tug of war between FED and BOE, over who hikes first, since BOE hike expectation is pushed back to 2017 or very late next year.

Bank of England (BOE) has dropped its previous rhetoric that UK to have no major impact from China slowdown, recognizing indirect links still may affect UK outlook big time.

Preview -

• Monetary policy decision - No major change is expected from interest rates point of view, however hawkish or dovish tone in the policy statement might set the mood for Pound and Gilts.

• BOE minutes - Minutes would be closely watched by economists and market participants as it would include hawkish and dovish members. In last policy meeting, Ian McCafferty voted in favor of hiking rates, while another prior hawk Matin Weale kept his silence in favor of wait and watch.

Today's policy meet is very crucial in sense that it is first after ECB disappointment and last before FED hike rates, next week. So what tone, BOE catch from here would be crucial for Pound.

Market is expecting at least 1 hawk in the team, Mr. Ian McCafferty (hope he hasn't changed his mind meanwhile). Presence of any more hawks would be very bullish for Pound.