BoE to leave policy on hold - TDS

Analysts at TDS are expecting the BoE to leave policy on hold tomorrow, and to largely repeat its message from the May IR.

Key Quotes

“Crucially, they are likely to confirm that the 18Q1 slowdown was temporary, and reiterate that rates need to rise "gradually" and to a "limited extent".”

“We expect another 7-2 vote, with risks of another hawkish dissenter.”

“FX: An on-hold MPC should leave GBP without a strong directional push as global forces dominate. A hawkish dissent may see some modest downside in EURGBP after the ECB. Dovish risks may be best expressed in cable amid a broadly stronger USD and ongoing Brexit concerns.”