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