Live Coverage: Bank of England may boost Pound with hawkish stance
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CLAIM OFFERLess than 24 hours after the dovish Fed decision, the Bank of England is set to stand out by holding interest rates – but the majority size is uncertain. Live coverage.
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Bank of England has reasons to be hawkish
The Bank of England (BoE) kicked off its hiking cycle in August – but it was kicking and screaming. BoE Governor Andrew Bailey's vote was critical in the tight 5:4 decision.
That hawkish cut is expected to be followed by a decision to leave rates unchanged at 5%, keeping it above the Fed range of 4.75-5.00%. That would give Sterling an advantage over the US Dollar, and also vs. other currencies.
UK core inflation held up at 3.6%, providing ammunition for the hawks. Only two out of nine members are projected to support a second consecutive cut. A narrower 6:3 majority would temporarily weigh on the Pound.
Apart from inflation, Britain's labor market remains solid, and other indicators seem stable, backing a hawkish decision.
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Less than 24 hours after the dovish Fed decision, the Bank of England is set to stand out by holding interest rates – but the majority size is uncertain. Live coverage.
Join FXStreet Premium to ask our analysts questions live, leverage actionable analysis and get Gold and signal alerts.
Bank of England has reasons to be hawkish
The Bank of England (BoE) kicked off its hiking cycle in August – but it was kicking and screaming. BoE Governor Andrew Bailey's vote was critical in the tight 5:4 decision.
That hawkish cut is expected to be followed by a decision to leave rates unchanged at 5%, keeping it above the Fed range of 4.75-5.00%. That would give Sterling an advantage over the US Dollar, and also vs. other currencies.
UK core inflation held up at 3.6%, providing ammunition for the hawks. Only two out of nine members are projected to support a second consecutive cut. A narrower 6:3 majority would temporarily weigh on the Pound.
Apart from inflation, Britain's labor market remains solid, and other indicators seem stable, backing a hawkish decision.
Live financial market coverage
FXStreet covers major economic releases in a live blog format, to provide readers an instant verdict of the data, rapid analysis of key assets, and, for Premium members, the ability to ask our experts questions in real time.
FXStreet Premium
FXStreet Premium provides subscribers access to analysts, exclusive actionable analysis, signals, Ed Ponsi's webinars, trade plans, and a bullish/bearish indicator for Gold on critical events. Join FXStreet Premium here.
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