Earlier post is here: Bank of England monetary policy meeting Thursday 5 August 2021 - preview
Remarks from Westpac on what they are watching for
- We will be looking for commentary around the risks to the outlook, and any possible guidance on asset purchases, balance sheet normalisation, or the policy rate.
- Although activity is rebounding briskly, the Delta variant poses new uncertainties for the Bank.
ING:
- We don't expect any new guidance on the interest rate path and look for the repeat of prior language that significant progress' is needed before stimulus is removed.
- Only 1-2 members are likely to vote for an early end of the QE.
- As this should not come as a surprise to markets and the guidance should be seen as neutral, the impact on GBP should be rather limited.
Credit Agricole:
- MPC will remain unanimous on the need to keep the bank rate at its current depressed level.
- Also of interest for the FX markets, would be whether the updated economic projections would signal any change to the current cautious medium-term BoE outlook. We believe that this will not be the case, however, and remain sceptical that the BoE would ever join the camp of the hawkish central banks anytime soon
- we thus maintain our relatively cautious outlook on GBP