The BOE holds its policy meeting later in the day. What is the outlook for GBP, given this meeting?
Here is their view, courtesy of eFXdata:
Bank of America Global Research discusses its expectations for tomorrow’s BoE policy decision.
“Risks skew to a hawkish message at Thursday’s BoE policy meeting, in our view, as rate-setters focus on Budget stimulus.
Little to limit market focus on the hawks near-term. Medium-term, fiscal uses up the room for policy tightening, in our view,” BofA notes.
“FX: Bar to dovish surprise is high given recent communication. GBP could benefit from optimistic tone,” BofA adds.
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