Back
12 Feb 2014
Flash: BoE inflation report may keep GBP in check - RBS
FXStreet (Bali) - GBP will have to cope with the BoE inflation report, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"The BoE inflation report today may keep the GBP in check. RBS expects the BoE to introduce some direct forecasting of its policy rate into the report in order to counter market expectations of a rise in rates too soon."
"Rates are expected to be around 1% in two years 2% in three years, up from a policy rate of 50bp currently and a cash rate of near 42bp. This is not a particularly aggressive track in light of the solid recovery in activity and housing market in the UK at this time."
"As such, it is not clear the BoE will be able to achieve much further effective easing with its report tonight."
Key Quotes
"The BoE inflation report today may keep the GBP in check. RBS expects the BoE to introduce some direct forecasting of its policy rate into the report in order to counter market expectations of a rise in rates too soon."
"Rates are expected to be around 1% in two years 2% in three years, up from a policy rate of 50bp currently and a cash rate of near 42bp. This is not a particularly aggressive track in light of the solid recovery in activity and housing market in the UK at this time."
"As such, it is not clear the BoE will be able to achieve much further effective easing with its report tonight."