The Bank of England holds a key policy meeting on Thursday and the Brexit negotiations could reach their conclusion. How will these events affect GBP?
Here is their view, courtesy of eFXdata:
Bank of America Global Research discusses its expectations for the BoE policy meeting on Thursday.
“At 18 June policy meeting we expect BoE to agree £100bn more QE, purchased at a slower pace than currently. We expect a bigger package in August. Bank Rate cut to 0%, more generous TFS and possibly weak form of yield curve control,” BofA notes.
“In the coming weeks, we expect Brexit and the broader risk backdrop to dominate GBP price action. June is shaping up as the pivotal month in the Brexit negotiations as political impetus is given. Our views on extension are well known and we believe that uncertainty will intensify into 3Q as both sides continue negotiations. Our preferred bias remains for a weaker GBP particularly against low beta currencies such as EUR, CHF and JPY (in order of preference),” BofA adds.
Share
