BoE meeting: "Risk to the outlook remains very high" according to ecPulse

FXStreet Team FXStreet

FXstreet.com (Barcelona) - Ahead of the Bank of England's Monetary Policy Committee meeting there is little doubt that the interest rate will be held at 0.5% and the Asset Purchase Facility at £200 Billion, disregarding Andrew Sentance's plead to tighten. On the other hand, the UK's outlook for growth might be at risk amid a tremulous global recovery.

The first one in the UK to suffer the consequences of the muddy road recoveries are currently on could be the
pound. Layalee Ramahi, Strategic Manager at ecPulse.com, draws the following blueprint: "We still see the BoE withholding their status quo preemptively against piling downside pressures. The pound is depreciating on weaker than expected outlook prospects and slimming risk appetite, yet the decision might support the royal pound slightly as the BoE acts as a backstop, though still we see sterling like to continue bearish for now."

After the tides changed in economic indicators, shifting from strong second quarter to softer third quarter data, Ramahi analyzes: "The risk to the outlook remains very high especially with signs of slowing global recovery across major trading partners for U.K. Spending cuts have already been activated and more are expected to be announced by the end of the year further straining the recovery."

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