The BoE statement is due at 1100 GMT / 0700 US Eastern time. A 25bp rate cut is the consensus estimate.
Bank of England Governor Bailey speaks at 1130 GMT / 0730 US Eastern time.
Communications from the Bak have been light, but the cut is expected to win by a small majority of votes on the Monetary Policy Committee.
Barclays say a ‘hawkish cut’ is an opportunity for GNP to remain resilient against EUR:
- Rate differentials should not be much affected by the reallocation of cuts across the cycle, implying limited damage for the pound.
- Instead, demand resilience and a willingness to re-engage with the EU are far bigger positive influences for the pound, in our view, and we look to re-engage on the long side on any further weakness.
