Bank of England: what to expect?
The Bank of England policy meeting (Thursday, 11:00 GMT) will likely be a non-event for the markets as monetary policy will likely remain unchanged. However, policy minutes release on August 20 will likely be more interesting, disclosing the internal MPC sentiment.
Given the expected slowdown in the UK economy in H2, there is now a high chance we won't see higher interest rates until the year 2015. We have to keep in mind the upcoming Scottosh referendum (September 18) and the potential negative effect from sanctions against Russia.
GBP/USD consolidates around $1.6830 ahead of the meeting. The bearish pressure on the cable will likely itensify followig the policy announcement.