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6 Aug 2015
BoE’s MPC to remains cautious today – Rabobank
FXStreet (Edinburgh) - Strategist Carlijn Prins at Rabobank sees the MPC to keep a cautious tone despite market expectations of a hawkish tone at today’s BoE meeting and minutes.
Key Quotes
“Already current MPC hawk Weale has hinted that he could vote for a rate hike as soon as August, meaning that the MPC vote could be split very soon”.
“August brings a change to the BoE’s schedule since the Quarterly Inflation Report and MPC minutes will be published to coincide with the policy announcement”.
“While this will bring added interest to the meeting this month, we still see good reason for the MPC to retain a cautious tone in view of the headwinds coming from sterling strength, fiscal tightening, slow growth in the eurozone and a weakening pace of expansion in China”.
Key Quotes
“Already current MPC hawk Weale has hinted that he could vote for a rate hike as soon as August, meaning that the MPC vote could be split very soon”.
“August brings a change to the BoE’s schedule since the Quarterly Inflation Report and MPC minutes will be published to coincide with the policy announcement”.
“While this will bring added interest to the meeting this month, we still see good reason for the MPC to retain a cautious tone in view of the headwinds coming from sterling strength, fiscal tightening, slow growth in the eurozone and a weakening pace of expansion in China”.