No policy change is expected from BoE today. But recent development suggests that policymakers would remain upbeat about the economic outlook. Upgrades in the near-term GDP growth and inflation forecasts are likely. The development to keep Bank Rate unchanged at 0.10% should be unanimous. Yet, the vote on maintaining asset purchase target at GBP 895B would be divided. Michael Saunders and Dave Ramsden could vote for an early end to the program. At the May and June meetings, the now-departed Chief Economist, Andy Haldane, was the only member dissenting to leave the size of QE purchases unchanged.
Suggested readings on BoE:
- BOE Preview – Awaiting Signals to Exit
- BoE Policy Meeting Preview
- BoE Meeting: Neutral, With a Touch of Optimism
- Bank of England Preview: Central Bank To Bide It’s Time?
- Research UK – Economic Recovery is Set to Continue
GBP/CHF continues to trade with an undertone for the near term, as recoveries were limited by 55 day EMA. At this point the choppy correction from 1.3070 is still in favor to continue. Break of 1.2498 support would target 1.2259 key resistance turned support next.
