GBP/USD still negative, BoE extends ‘wait-and-see’ mode – UOB

FX Strategists at UOB Group assessed the recent outcome from the BoE’s MPC meeting and Quarterly Inflation Report.

Key Quotes

“It is clear that the BoE remains prepared to respond in either direction. Whilst the lift in near-term growth forecasts were widely expected, the fact that inflation forecasts were relatively unchanged means this should quell some calls for a rate rise”.

“The MPC’s attempt to combat rising inflation and support growth is likely to remain a challenging balancing act. This supports our view that the BoE will remain in a ‘wait and see’ mode for the time-being, watching more economic data, especially on business activity and consumer spending”.