BoE: Corona shock to weaken the sterling – Nordea
|While no policy changes were made today, the Bank of England (BoE) stands ready to adjust its asset purchase programme. Analysts at Nordea see more GBP weakness ahead.
Key quotes
“In line with expectations, the BoE did not change any of its policy instruments today.”
“On inflation, the CPI index is expected to decline to below 1% in the spring due to lower oil prices primarily.”
“In terms of the sterling, the reaction was fairly muted as the outcome was in line with expectations. We still look for GBP downside given the increasingly concerning corona situation in the UK, fear of returning no-deal Brexit headlines as well as an exposed banking sector.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.