BoE a ‘non-event’, UK political jitters on the rise – Danske Bank

FXStreet (Edinburgh) - Analyst Kristoffer Lomholt at Danske Bank expects the Bank of England to remain ‘on hold’ while elections-related concerns keep weighing on the sterling.

Key Quotes

“We expect the BOE to leave policy unchanged today”.

“Sterling markets should instead begin to gear up to the UK general election in early May: historically GBP has weakened in the run-up to elections - not least if a Tory government (and fiscal tightening, everything else equal) has been on the radar”.

“This time the outlook for a hung parliament has the potential to cause market jitters and weigh on GBP near term”.