Despite slower growth, the Bank of England (BoE) has turned more hawkish recently, as inflation has moved higher and the unemployment rate lower. Still, we do not expect a BoE rate hike before some time in 2019: GDP growth has slowed, wage growth remains weak and political uncertainty is high. We still view the core of the Monetary Policy Committee as tilted to the dovish side.
At this meeting, the BoE is expected to vote 6-2 in favour of keeping the Bank Rate unchanged against 5-3 on the previous occasion, as Kristin Forbes (hawk) has been replaced by a new external member.
The central bank is further expected to announce that the Term Funding Scheme will end in February 2018 due to consumer credit growth concerns.
"We expect the BoE to revise down its projection for GDP growth, keep inflation path broadly unchanged while the projection for the unemployment rate is likely to show a stabilisation at around the current level of 4.5 percent," Danske Bank commented in its latest research report.
Meanwhile, the recent leg higher in EUR/GBP has been driven mainly by general EUR appreciation. A 6-2 vote is likely to be interpreted as a modestly dovish signal and thus could trigger a renewed test of the 0.90 level.
Meanwhile, FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/inves


Fed’s Logan Signals 50 Basis Points More in Rate Hikes
BOJ Signals Faster Rate Hikes as Inflation Risks Grow
Fed Unveils Stablecoin Rules Under GENIUS Act
Best Gold Stocks to Buy Now: AABB, GOLD, GDX
Philippines Current Account Deficit Seen at $19.1 Billion in 2026
Samsung, SK Hynix Shares Plunge as China Chip Competition Grows
Nasdaq Falls as Oil Prices Surge Ahead of Bank Earnings
Oil Prices Fall as Trump Ceasefire Claim Shifts Market Focus to U.S. CPI
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
S&P 500 Rally Masks Losses for Over 40% of Stocks in 2026
Visa Wins China Approval to Prepare Domestic Payments Expansion
Trump Demands Powell Resign Over Fed Renovation Cost Overruns




