Live Coverage: Bank of England may boost Pound with hawkish stance

Yohay Elam FXStreet

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.

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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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Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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