Will the BOE hike rates?

25 October, 2017

Will the BOE hike rates?

The British pound is under pressure in today’s trading after some analysts and a Bank of England board member threw into question the expected rate hike due out in the UK next week.

Comments from BoE Deputy Governor Sir Jon Cunliffe earlier today show the divide at the moment between BOE board members on the timing of an interest rate hike and as a result the pound was sold off.

‘I am not going to try and anticipate the November meeting, but for me the economy has clearly slowed this year” Mr Cunliffe said.

“Over the forecast period of three years interest rates will need to rise. The exact timing of when that starts? well, that for me is a more open question”. He added.

Some analysts also believe that the market is jumping the gun on the question of rate rises and that the pound has risen in recent weeks on such expectations. With the UK still without a Brexit deal among other things, it’s going to be difficult to justify a rate hike next week.

“Our highest conviction macro trade in recent weeks has been short GBP as we felt that UK rate hikes were overpriced given the weak starting point for UK growth and the existential Brexit shock that continues to dominate the medium-term outlook,” says Daniel Hui, a foreign exchange strategist at JPMorgan.


Source link  
Oil price is about to take off

The oil price has pulled back today after hitting a 3 year high in yesterday’s trading session but the drop is seen as temporary as the US gears...

Gold in for a sustained rally

The gold price has run into some stiff resistance today at around the $1,350 mark as it did in the middle of February and has pulled sharply lower bringing...

Pound may have jumped ahead

The British pound has continued on its winning ways in today’s trading session, breaking through the $1.42 level against its US counterpart after last...


Pound to remain supported

The British pound is trading higher for a 4th straight day against the greenback after another round of disappointing data from the US cast doubt...

Gold to benefit on fewer rate hikes

Gold has pushed higher in today’s trading session after the release of key data from the US and a shock move by US President Donald Trump to dismiss...

Gold to benefit on trade wars

The gold price has had a rough time over the last 2 weeks tumbling around $40 dollars but it seems as if the precious metal has found a new friend...


Pound may be about to plunge

The British pound has fallen heavily over the last 3 trading sessions against its US counterpart as investors pile into the greenback in...

Pound may surge on 2nd referendum

The British pound may soon hit $1.40 as expectations grow that a 2nd referendum will be held on whether Britain will remain in the European Union with the chances...

Gold may be a good bet in the new year

The gold price jumped to a 3-week high in early trading today, taking its gains to over $40 in less than 2 weeks and with the market expected to remain...

  


Share: