GBP: BoE Heading For A Hike In May & Another One In Nov – Danske

The Bank of England left the interest rate unchanged but two members voted for a hike. What’s next for the BOE and the pound?

Here is their view, courtesy of eFXnews:

Danske Research discusses its reaction to today’s BoE rate decision and minutes.

“We still believe the BoE is heading for a May hike and we also believe another hike in November is likely, which is more than the one BoE hike forecast by consensus. As we argued back in February after the last meeting, the BoE seems to have launched a regular hiking cycle and this meeting has not changed our view Markets have priced in approximately 42bp hikes this year, so we are more hawkish than both other houses and market pricing.

Although the Brexit transition deal is, other things being equal, positive news, it is in our view not a game-changer for EUR/GBP in the short-run and we forecast 0.87 in 3M,” Danske argues.

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