BoE: to tighten rates 25bps at the May meeting - Scotiabank

Ross J Burland FXStreet

Analysts at Scotiabank explained that the BoE MPC member McCafferty said that policymakers should not delay its next rate increase as inflation could run hotter than forecast.

Key Quotes:

"We look for the BoE to tighten rates 25bps at the May 10th policy meeting, a view increasingly endorsed by the rates market, which is now pricing in 87% risk of a ¼ point rate hike next month."

"The increasing conviction around BoE tightening plus recent progress on Brexit suggests modest upside risks for the GBP at least in the near-term. There were no UK data reports today."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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