Analysts at TD Securities expect the BoE’s MPC to hike rates by 25bp, with a clear majority vote.
Key Quotes
“We think this will be the last hike until mid-2019, however. Recent data & Brexit developments suggest skew risks to the downside.”
“FX: Our base case suggests modest, short-term upside risks for GBP but range trading is likely to reassert itself after a large knee-jerk move.”
“Rates: Immediate reaction to a rate hike should be fairly contained. We remain cautious around BoE’s first estimate of its “neutral” rate with markets still underpricing the MPC’s rate hike path.”