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According to analysts from Danske Bank, expect Bank of England interest rates to be neutral for the pound in the near-term. They see Brexit as the key driver.  

Key Quotes:  

“As expected, the Bank of England meeting did not cause any significant reaction in EUR/GBP. The market is pricing the next full 25bp hike in the UK to arrive in November 2019, which is relatively dovish compared with our call for a hike in May 2019. However, given the uncertainty surrounding Brexit, we see little prospect of a repricing of the Bank of England. Hence, in our view, UK interest is set to remain neutral for GBP in the near term.”

“Instead, we expect Brexit to remain the key driver and source of volatility for the GBP until a deal is reached. In our base case, we target EUR/GBP at 0.83 in 3M, assuming that a decent Brexit is reached within the period.”