Not much, I’m afraid. We will not get a hike, and the BOE rarely makes a statement unless changing policy. The usually only announces the rate and the state of their asset purchases.
With the economy facing both inflation and slow growth, the BOE has so far sided with the slow growth camp. With inflation largely attributed to rising commodity prices and a big hike in the VAT, there is little the BOE can do to influence those factors, so a rate hike would be counter-productive, many think.
Odds are the BOE does and says nothing on Thursday. We will have to wait two weeks for the minutes to get a read on which way they are leaning as a group.
With Cable just about midway in a broad range 1.60/1.6350 range, I would not trade this pair on view for a BOE move any time soon.
