BOE to shy away from comments about market expectations of future rate hikes – TDS

In the view of analysts at TDS, the Bank of England (BOE) is expected to leave the interest rates unchanged at its monetary policy meeting today while remaining cautious on the forward guidance.

Key Quotes:

“We expect the MPC to keep policy on hold and shy away from comments about market expectations of future rate hikes. 

But in reaffirming its view that the 2018 Q1 growth slowdown was temporary, markets might interpret that as a signal that an August hike is more likely. 

We expect a 7-2 vote, but risks of a 6-3 vote should not be discounted.”