Analysts at TD Securities are expecting that the tone of Thursday’s BoE to suggest they cannot sit on the Brexit sidelines forever.
Key Quotes
“A rate hike isn’t likely near-term, but the MPC may want to suggest a 2019 move is possible.”
“FX: With GBP back in familiar ranges vs both USD & EUR, the MPC may provide some tradable near-term direction. We do not, however, expect the BoE to launch sterling on a new longer-term trend until fresh catalysts emerge.”
“Rates: From pricing in rate cuts early this year, we are now pricing in around 9bps of rate hikes in 2019. A hawkish tilt from the BoE continues to support this move.”
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