BoE Policy Meeting Preview – Rabobank

FXStreet (Guatemala) – Analysts at Rabobank note that Martin Weale has dusted off his hawkish colours and hinted that he may be prepared to vote in favour of a BoE rate hike in August.

Key Quotes:

“These remarks come after the release of stronger than expected UK earnings data for April. On the other hand, the MPC’s Cunliffe has described the Greek situation as “fluid, volatile and dangerous”. This language is not normally associated with policy maker who is likely to be in favour of tighter policy at any point soon.”

“To give him fair due, Weale remarked that Greece uncertainties would likely steady his hand in July.”

“Nevertheless, it seems that the MPC vote could be split by the end of the summer. Even so, we would argue that it would be some months before the majority of the committee vote in favour of a rate rise. We continue to favour steady policy until May 2016. “

Analysts at Rabobank note that Martin Weale has dusted off his hawkish colours and hinted that he may be prepared to vote in favour of a BoE rate hike in August.

(Market News Provided by FXstreet)