The Bank of England sets policy today at noon BST and analysts at TDS expect the MPC to keep policy on hold with a 7-2 vote, reiterating that rates need to rise “gradually” and “to a limited extent”.
Key Quotes
“By re-affirming their May forecast (and in doing so, confirming that the 18Q1 weakness was temporary), we think that the MPC will move one step closer to an August rate hike.”
“Risks are generally balanced, with risks to the upside of a 6-3 vote, and to the downside of continued uncertainty over (in particular) production and trade data.”
“Later in the day, Governor Carney and Chancellor Hammond both give their annual Mansion House speeches. Carney’s speech is scheduled for release at 21:15 BST, though it’s not clear if he’ll discuss monetary policy as the BoE’s blackout rules technically forbid discussing policy through to midnight.”
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