Economists at Scotiabank analyze GBP outlook ahead of the BoE policy decision.
Initial GBP reaction may reflect how deep – or not – the dissent runs on the MPC
The Bank is expected to hold its key rate at 5.25% although the decision may reflect some dissent with up to 3 of the 9 policy makers voting for a hike.
The initial GBP reaction may reflect how deep – or not – the dissent runs on the MPC today.
A dovish-leaning outcome should drive a bit more GBP underperformance on the crosses (EUR/GBP above 0.87).
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