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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.”