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Tim Riddell, analyst at Westpac, points out that the BoE minutes maintained a decidedly neutral stance given the continued uncertainty around Brexit, citing a lack of investment intentions outweighing solid labour data.

Key Quotes

“Consequently, pricing of a BoE rate cut remained relatively contained.”

“An innocuously profiled speech to local government officials by BoE governor Carney this week triggered a sharp shift in expectations in GBP rates markets.”

“Although Brexit may on the backburner as a new PM is selected, it remains the main domestic obstacle to growth. Therefore the shift lower in rates this week has weighed on GBP which now threatens the lower bounds of its recent 1.25-1.30 range.”