AxiTrader Analyst, James Hughes on The Bank of England’s interest rate decision this week
We have what could be a huge week ahead for the Pound, with the Bank of England’s interest rate verdict due on Thursday. Mark Carney has spurned market hopes of a rate hike repeatedly in recent months, but will this week be the time he shrugs off that ‘unreliable boyfriend’ moniker?
Despite the uncertainty over Brexit, the market currently forecasts an 80% chance of a rate hike and the MPC verdict coincides with the release of the quarterly inflation report, which is the preferred time for action.
The UK really needs higher rates to pave the way for stimulus measures when the economy next slows. Failure for the bank of England to deliver on Thursday has the potential to send the Pound into freefall.