Currency Analyst since 2010

Bank of England: a hawkish message?

When we speak of British pound, the focus is clearly on the Bank of England’s interest rate decision on Thursday at 11:00 GMT and the following interest rate statement. According to consensus, the central bank will leave its policy unchanged this month.

Analysts at RBS point out that as the minutes of the previous meeting show that the members of the Monetary Policy Committee (MPC) have different views on policy, the bank is unlikely to openly demonstrate a dovish tone this month (there won’t be a consensus for that) – an idea which in itself is GBP-positive. Such view is underlined by better than-expected economic data coming out of the UK. Strong economic reports will put pressure on the Bank of England to consider an earlier interest rate rise: in August in announced its intention to keep the benchmark rate at 0.5% until unemployment rate falls to 7%.  

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