Morning note from Westpac's Senior currency strategist Sean Callow, on the Bank of England meeting.

In brief:

  • The BoE is likely to judge the growth outlook as having deteriorated
  • But the slide in GBP points to higher imported inflation ahead
  • Westpac looks for a 25bp cut in the bank rate
  • The decision on resuming asset purchases is likely to be a close call. A majority of forecasters look for bond purchases to remain at GBP375bn but a solid minority expect an increase of say GBP50-75bn.
  • Sterling seems likely to move sharply whatever the decision

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Here is more on the BoE today:

  • How to trade the August BOE interest rate decision
  • Goldman Sachs on 3 things to expect from the Bank of England today (& GBP reaction)
  • Its Thursday, that must mean its BoE meeting day - here are the poll numbers
  • Bank of England preview: I've never been so conflicted over a BOE decision
  • Here's the truth about cable
  • Bank of England meeting Thursday; "Look for a 25bp rate cut & £50bn of QE