Bank of England meets Thursday 01 February 2024:
- no policy changes are expected
- looking ahead markets have priced in the first cut from the Bank by the June meeting (the 20th), may is a possibility though
Traders will be assessing the break down of votes on the Monetary Policy Committee (MPC) for how the hawks are seeing the need for additional tightening (a smaller minority is seen as voting for this)
This meeting will accompanied by updates to forecasts. These will be adjusted in regards to expected wage rises still to come, rising shipping costs, and expected fiscal stimulus in the government budget due on March 6.
- We expect the central bank to stay on hold for a fourth meeting in a row, keeping the Bank Rate at 5.25%, but signal a soft dovish pivot.
- Further out, we see the first rate cut in May but acknowledge risks are skewed to a later start.
This article was written by Eamonn Sheridan at www.forexlive.com. Source