Citi ahead of tomorrow's BOE decision

Citi discusses its expectations for tomorrow's BoE policy meeting.

"We expect that the MPC will not provide any major surprises to markets and will keep the Bank Rate unchanged at 10bps while scaling up the total size of asset purchases for its QE program by GBP200bn, in line with Citi Economics' view," Citi notes.

"We remain structural GBP bears. The meeting is unlikely to drive GBP near term unless the dovish NIRP risk strongly materializes: -A cut to 0bps in the Bank Rate - A cut to the TFSME lending rate into negative territory, and -Nods toward negative rates," Citi adds.

Cable is down 35 pips to 1.2537 today.

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