The pound has suffered quite a bit from weak economic data and the consequent postponement of a rate hike by the Bank of England. The team at Danske analyzes the situation. While they see the BOE holding, a hawkish brand of holding may be on the cards.
Here is their view, courtesy of eFXdata:
Danske Research discusses its expectations for next week’s BoE May policy meeting.
“We change our call and no longer expect the Bank of England (BoE) to increase the Bank Rate at the MPC meeting on 10 May.
We think a rate hike will be postponed to the next big meeting in August. In this sense, it is going to be a hawkish hold given the relatively subdued market pricing of future BoE rate hikes,” Danske argues.
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