Bank of England’s meeting, on 6 August at 06:00 GMT, isn’t expected to bring any major policy decisions. Therefore, economists at TD Securities expect a limited reaction as USD direction dominates. Dovish shifts represent the MPC marking itself to market. A hawkish surprise could help GBP close its value gap, but sterling still faces headwinds from a sluggish recovery and ongoing Brexit concerns. Key quotes “Hawkish (35%): V-shaped recovery. Rates and QE unchanged. MPR has an illustrative scenario rather than formal forecasts, suggesting that MPC could not agree as Haldane continues to push V-shaped recovery. H2 2020 and 2021 GDP growth still unrealistically strong and u-rate forecasts hold below consensus view. Medium-term inflation returns to target 2-3y forward, leaving no real need for QE beyond end-2020. GBP/USD 1.3170 EUR/GBP 0.8950.” “Base Case (55%): Realistic Recovery. Rates and QE unchanged. BoE moves to more realistic macro forecasts, with slower recovery from H2 2020 onwards and GDP back to end-2019 level in 2022/23. U-rate seen ~8% at end-2020, in line with consensus. 2-3y inflation forecasts slightly below 2% target. BoE ‘stands ready’ to do more, but Bailey clearly more concerned about longer-lasting damage to economy and labour market in particular. GBP/USD 1.3110 EUR/GBP 0.9020.” “Dovish (10%): Double-digit u-rate into 2021. Rates and QE unchanged. BoE slashes macro forecasts and sees u-rate at/near double digits into 2021, more in line with NIESR and OBR fcsts. Medium-term inflation forecasts are much lower on yawning output gap, with clear signal that QE will need to be extended into 2021. GBP/USD 1.3005 EUR/GBP 0.9065.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Gold Price Analysis: Dip is proving a buying opportunity, big breakout extends – Confluence Detector FX Street 2 years Bank of England’s meeting, on 6 August at 06:00 GMT, isn't expected to bring any major policy decisions. Therefore, economists at TD Securities expect a limited reaction as USD direction dominates. Dovish shifts represent the MPC marking itself to market. A hawkish surprise could help GBP close its value gap, but sterling still faces headwinds from a sluggish recovery and ongoing Brexit concerns. Key quotes “Hawkish (35%): V-shaped recovery. Rates and QE unchanged. MPR has an illustrative scenario rather than formal forecasts, suggesting that MPC could not agree as Haldane continues to push V-shaped recovery. H2 2020 and 2021 GDP… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.