Will the Bank of England cut rates? Markets are unsure about the decision and accompanying messages, which means high volatility for the Pound and other currencies—live coverage.
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Why this Bank of England decision is highly volatile
Officials at the Bank of England (BoE) have been silent in recent months, refraining from talking in order not to influence the elections. That put investors in the dark. Bond markets price a roughly 60% chance of a rate cut, a response to falling inflation and a cooling British labor market. However, nothing is certain.
BoE Governor Andrew Bailey and his colleagues may accompany their decision with hawkish commentary, pushing back against market expectations for further cuts. That would cause a whipsaw in GBP/USD and other Sterling crosses.
If only a small majority in the nine-strong committee back a rate cut, the Pound could bounce.
The "Old Lady" also releases its quarterly Monetary Policy Report (MPR) which includes inflation and growth forecasts.
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