BOE’s monetary policy preview

Bank of England (BOE) is scheduled to announce its monetary policy at 11:00 GMT, will release minutes of meeting along with.

Pound is trading just below key resistance of 1.543 against Dollar, heading into monetary policy statement.

Bank of England (BOE) governor Mark Carney has reiterated his view of rate hike to be next probable path at turn of the year even after financial market volatility arising from Chinese instability.

Preview -

• Monetary policy decision - No major change is expected from interest rates point of view, however hawkish 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. A new member has joined the team, Dr Gertjan Vlieghee replacing Mr. David Miles in August.

Market is expecting at least 1 hawk in the team, Mr. Ian McCafferty (hope he hasn't changed his mind due to China). Presence of any more hawks would be very bullish for Pound. Presence of three hawks would be very bullish for Pound as it would indicate presence of a new hawk, even if Mr. Weale votes to hike rates.