Bank of England Rate Decision Preview - What Matters
• None BoE to Reiterate Dovish Stance, However, Lack of New Policy Hint May See GBP Snapback Higher
The Bank of England is expected to maintain its current monetary policy with the bank rate at 0.1% and APF at GBP 745bln.Today’s meeting is unlikely to provide much in the way of surprises given that there will be no press conference or forecasts alongside having enough capacity in the current QE program. That said, in light of rising concerns over a possible second wave of COVID cases and a sizeable market repricing in no-deal Brexit risks. The Bank of England is likely to tilt towards the dovish side, however, with market pricing very much on the dovish side, inaction can leave room for disappointment. That said, one way the BoE could hint at taking action sooner rather than later is via dovish dissenters in a vote split.
No Need to Address QE Now as BoE Have Plenty of Capacity
EU-UK Trade Negotiations: Political uncertainty and the repricing of no-deal Brexit risks have been heightened in recent sessions. This has come amid the UK looking to pass the Internal Market Bill (IMB) through parliament in the coming weeks, which in turn has led to trust between the UK and EU arguably hitting an all-time low in this Brexit saga with the EU giving the UK an ultimatum. Either withdraw the bill by the end of the month or face possible legal action if not. However, while the odds of a no-deal Brexit have increased notably ...
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