Bank of England meet next week - preview
Bank of England meeting Thursday January 30
- The rates market pulls back BOE rate cut pricing for next week
- What to watch ahead of the Bank of England meeting (the data referred to in this post is due Friday UK time 0930GMT)
MUFG (via Bloomberg):
- "If the BOE are to cut interest rates by the end of this month, it's seen more as a risk management move to try and solidify expectations for a rebound in growth going forward"
- forecasts a cut in May, not in January
- project a rate cut next week, then again in May
- will weigh on GBP, but further ahead "rate cuts … will support growth. At the same time the U.K. will begin to attract capital inflows given sterling's attractive valuation"