23 Jul 2015
BoE closer to hike, GBP gets stronger – BTMU
FXStreet (Edinburgh) - Lee Hardman, Currency Analyst at BTMU, believes the BoE is getting ready to hike rates, while sterling should gather upside momentum.
Key Quotes
“The BoE believes that the UK economy has returned to more solid growth and is expecting GDP growth of 0.7% in Q2 and in Q3”.
“The continuation of above trend growth and accelerating wage growth is prompting the BoE to move closer to raising interest rates”.
“External pressures from renewed weakness in commodity prices and the strengthening pound are a disinflationary offset”.
“We continue to believe that the pound is likely to strengthen further heading into year-end as the BoE moves closer to raising rates”.
Key Quotes
“The BoE believes that the UK economy has returned to more solid growth and is expecting GDP growth of 0.7% in Q2 and in Q3”.
“The continuation of above trend growth and accelerating wage growth is prompting the BoE to move closer to raising interest rates”.
“External pressures from renewed weakness in commodity prices and the strengthening pound are a disinflationary offset”.
“We continue to believe that the pound is likely to strengthen further heading into year-end as the BoE moves closer to raising rates”.