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The analysts at Citigroup expect the Bank of England (BOE) to announce no changes to its interest rates or asset purchase programme (APP). 

Key quotes

“The biggest catalyst to FX movements will likely come from any hints around NIRP. Given the mixed outlook with near term risks and optimism for the medium term, there are doubts about the MPC’s conviction on the direction of monetary policy this week.” 

“We note vaccine optimism continues to keep the pound well supported, cushioning against the downturns in risk sentiment. This is likely to play out as a medium-term catalyst should vaccinations result in a restart of the fragile UK economy.”

Read: Bank of England Preview: Bailey set to abandon negative rates, injecting sterling with new energy