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The Bank of England (BoE) will keep the Bank Rate unchanged at 5.25% and the first 25-basis-point cut isn’t expected until August, says Kirstine Kundby-Nielsen, FX analyst at Danske Bank. BoE expected to cut rate in August “We expect the BoE to keep the Bank Rate unchanged at 5.25% on 20 June, which is in line with consensus and current market pricing. We expect the vote split to be 7-2, with the majority voting for an unchanged decision and Ramsden and Dhingra voting for a cut.” “Overall, we expect the MPC to stick to its current communication, priming the markets for a forthcoming start to a cutting cycle. We expect the first 25bp cut in August.” “We expect a muted market reaction but see the balance of risk skewed to a move higher in EUR/GBP as the BoE tends to err on the dovish side, and we see a downside risk to our EUR/GBP forecast of 0.88 in 6-12 months.”   Source: https://www.fxstreet.com/news/bank-of-england-set-to-lay-groundwork-for-an-august-cut-danske-bank-202406141438

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Filed under: News - @ June 14, 2024 9:12 pm