Bank of America discussed its expectations for this week’s BoE meeting in a recent note to clients, arguing that risks are tilted to the upside.
Bank of America explains:
We expect the BoE to endorse market expectations of two rate hikes by end-2024 in this week’s monetary policy report… We look for the BoE to taper QE purchases at next week’s policy meeting. If not this week, then June.
The risks of a more hawkish BoE should be supportive for GBP, but much of the heavy-lifting on UK rates was done through 1 Q. That the BoE could announce Asset Purchase Facility (APF) tapering should not come as a total surprise given its stated objective to extend purchases through to end-2021. How the BoE views the outlook beyond the expected sugar rush and its implications for the rate profile is arguably more significant for the pound.
Bank of America explains:
We expect the BoE to endorse market expectations of two rate hikes by end-2024 in this week’s monetary policy report… We look for the BoE to taper QE purchases at next week’s policy meeting. If not this week, then June.
The risks of a more hawkish BoE should be supportive for GBP, but much of the heavy-lifting on UK rates was done through 1 Q. That the BoE could announce Asset Purchase Facility (APF) tapering should not come as a total surprise given its stated objective to extend purchases through to end-2021. How the BoE views the outlook beyond the expected sugar rush and its implications for the rate profile is arguably more significant for the pound.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.