What to expect from the Bank of England

The publication of the minutes of the BoE meeting will be on Thursday, November 2, which may influence the raise of the key interest rate by 25 bpts. to the level of 0.50%. The market has almost already played off these expectations in strengthening of the British pound across the entire spectrum of the market.

Despite the fact that the market is almost confident in raising rates, the UK Central Bank preserves the intrigue, which is expressed through the further policy of the Central Bank. Also, it is not known – whether it is a one-time action on the pound or the beginning of the cycle of tightening rates by the Bank of England. The answer to this question can give a report of the Bank of England and the speech of Carney, the head of the Central Bank.

The market will be focused on the number of votes for raising rates. Since there are 9 members of the commission, then to decide whether to raise the rates 6 votes are enough. This in the end will cause a brief increase of the British pound and will signal about the likely one-time increase in rates. At a time when all 9 members will vote for tightening monetary policy, the pound will receive significant support for the possibility of further rate increases.

Also, do not forget about the speech of the head of the Bank of England Carney, which will largely depend on the dynamics of the pound. And, of course, the market will expect hints of repeated increases in rates next year.

Recommended for reading: https://esterholdings.com/en/category/tehnicheskij-analiz/ and https://esterholdings.com/en/category/mneniya-ekspertov/

Hanzenko Anton