GBP could see some support from BoE – BTMU

Currency Analyst at BTMU Lee Hardman sees GBP could be supported at today’s BoE meeting.

Key Quotes

“The other key focus today for the pound will be the BoE’s upcoming policy meeting and release of their latest Quarterly Inflation Report”.

“The main development since their last Inflation Report from November is that economic growth has again proved stronger than expected. It should prompt the BoE to deliver their second consecutive upgrade to their growth outlook”.

“However, it would be more of a surprise if the BoE also shifted to a more hawkish policy stance after shifting to neutral back in November”.

“It is probably too soon for the BoE to signal that they may need to reverse the emergency easing delivered last summer. Upside risks have increased to their inflation outlook thereby acting to reduce their tolerance for pound weakness. The updated policy signal could provide some modest support for the pound”.