Ruilian Bank analyst Peter Kinsella says the Bank of England’s policy decision
on Thursday is unlikely to materially affect sterling. He expects the BoE to
keep the policy rate at 3.75% on a 7-2 vote, with updated forecasts to show weak
growth through year-end and inflation easing slightly. Continued upward pressure
on yields could prompt the BoE to slow QT, but Kinsella judges that change would
have limited impact on the pound; he expects EUR/GBP and GBP/USD to trade in
narrow ranges near term.
