FXStreet (Łódź) - According to Ross Walker, Senior UK Economist at RBS, the BoE is not expected to modify its monetary policy at the meeting next Thursday.

Key quotes

"Although the Governor signalled a ‘hawkish’ shift in policy guidance in his Mansion House speech on 12 June, the probability of any actual change in policy settings or an MPC statement in July is fairly remote – even Martin Weale, widely regarded as the leading ‘hawk’, said just a fortnight ago that he did not see the case for a hike in the ‘very near future’."

"Whilst our confidence in the BoE’s communication is much diminished – the risk of arbitrary shifts in policy guidance has increased materially – the Treasury Select Committee hearing on 24 June allowed the Governor and other MPC members to provide some clarification."

"Our take is that the Mansion House comments were intended to encourage markets to price in a >15% probability of a 2014 Bank Rate rise, not to signal that a November or December 2014 hike was now the most likely outcome."

"We altered our Bank Rate forecast following the Mansion House speech, bringing forward the timing of the first hike from August 2015 to February 2015 (with the risks skewed towards an earlier move in November 2014) and post-TSC are more comfortable with that call."

"There is unlikely to be much further light being shed in the coming week – we do not expect any statement – so the MPC Minutes on 23 July will become the main focal point."

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!