Will the BOE hike rates?

25 October, 2017

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  
Impeachment talk boosts gold

The gold price hit is highest level in 3 weeks yesterday after calls for the impeachment of US President Donald Trump left financial markets...

Oil to hit $75

The oil price surged as high as 20 percent is yeaterday’s trading session after an attack on Saudi Arabia’s biggest oil field removed more than 5 million...

Gold headed for $1600

The gold price remains steady today after turning back from what was beginning to look like a solid rally yesterday after words by US President...


Euro awaits Jackson hole

Despite all the pressure facing the European economy the Euro has managed to remain above the $1.10 level, but it seems the market is predicting...

Gold's next target is $1600

The gold price has taken a breather over the last few days after rallying more than $100 dollars in the space of 2 weeks and some...

Gold rally not over

The gold price remains firmly above the US $1500 dollar mark in today's trading session as traders seek out the precious metal as a safe haven on the back of political...


Gold poised to hit $1500

Gold continues to surge in today's trading session, following on from last weeks solid gains as investors seek out safe havens against the...

Aussie dollar up on Chinese data

The Australian dollar remains firmly above the US70c mark in today’s trading session after a strong round of data out of China alleviated...

Pound may hit $1.37 by years end

The British pound is expected to face increased volatility over the coming months as the deadline approaches for the UK to leave the EU at the end...

  


Share it on:   or