From the FXWW Chatroom – Bank desk views on Thursday’s BoE meeting – wide consensus on Bank Rate hold at 0.75% / no QE change but some other comments of note:
– Rabobank: MPC in wait-and-see mode while putting emphasis on the risk of further tightening should there be an inflationary no-deal Brexit. May 2019 the first realistic opportunity for the MPC to raise Bank rate to 1.00%.
– TD: At most, risks of a softer H218 might get flagged, otherwise communication focused on gradual rate hikes but heightened uncertainty over Brexit.
– NatWest: We expect unanimous policy votes [for no change] in September.
– RBC: Unlikely to deliver any changes on policy or guidance. MPC unlikely to push against benign rate hike market pricing given potential Brexit risks.
– Barclays: Could be some questions about how the MPC intends to take into account Brexit negotiations, but limited scope for market-moving revelations.
– Nomura: Expect decisions to keep rates and QE on hold to be unanimous (9-0), not saying much new following decision to raise rates last month.
– Credit Suisse: BoE chief Carney agreeing to stay until Jan 2020 is welcome news given the continuity that implies, but does not move the dial otherwise.
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