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BOE monetary policy preview
The pound has been struggling amid domestic political trouble, toning down of hawkish rhetoric from Bank of England (BoE), uncertainties surrounding the Brexit agreement between the European Union and the United Kingdom. In addition to that, the economy is still suffering from the political uncertainties of a minority government, which is leading Brexit negotiation, one of the most complex in history. Government’s main coalition DUP voted down many of government’s amendments and all the agreements. UK Conservative Party is currently voting to elect the next Prime Minister as Theresa May has stepped down from her post earlier this month.
Amid these uncertainties, BoE is scheduled to announce the interest rate decision at 11:00 GMT.
With all the buzz around Brussels and London and with focus on Brexit, the central bank’s announcements would be a non-event but volatility likely to move higher around the announcements.
BOE policy and expectation –