BoE expected to remain on hold for the time being – UOB

Lee Sue Ann, Economist at UOB Group, gave her views on the latest releases in the UK docket and the BoE event.

Key Quotes

“The latest slew of economic data out of the UK is likely to intensify pressure on the BoE. Last week, the BoE’s monetary policy committee (MPC) was divided over whether to reduce rates, with two of the nine-member committee voting for a 25bps rate cut from the current 0.75% rate”.

“This was the first time that there were votes for a lower policy rate since 2016, and the first MPC decision that was not unanimous since June 2018. The dissent by Michael Saunders was particularly significant, because it was only about 18 months ago that he had been the outlying vote for a rate hike. That said, his recent comments had marked him as an emerging dove, whereas Jonathan Haskel’s vote for a rate cut came as a total surprise”.

Despite the dovish tilt at the 7 November meeting, we expect the BoE to be in a wait-and-see stance. We believe that the two dissenters against a large majority is still somewhat premature in tipping the balance for a rate cut, especially with a no-deal Brexit scenario off the immediate agenda. We would prefer to wait for the outcome of the impending election and its subsequent impact on how Brexit may proceed, before making changes to our forecasts”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.


GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 


XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News