Tomorrow the Bank of England delivers its latest inflation report and interest rate decision 11 May 2016
I'm sure the GBP traders out there in ForexLive land won't be needing me to remind you but as range-trading prevails can we expect any fireworks tomorrow ?
There's no doubt that interest rates will remain on hold but once again we'll keep an eye on the vote count, currently 9-0 in favour of keeping unchanged. The risk remains to the downside with global fragility and Brexit uncertainties on the discussion list and with the US Fed in no rush to hike.
The BOE has already made it clear they will add liquidity into the 23 June referendum through gilt auctions and it remains possible that we could see MPC members veering away from the hike mode mentality. Powder will be kept dry though overall.
The latest BOE inflation report coming out at the same time (11.00 GMT) is unlikely to offer any comfort to GBP bulls but the picture will undoubtedly be muddied by the Brexit picture. We should expect Carney to remain as neutral/cautious as he needs to be but the presser/Q&A at 11.45 GMT could be quite revealing.
I'll post again on it tomorrow with some GBP levels to look for. We should see some fun n games when it all kicks off but don't expect Carney to deliver any major shocks.
