BoE expected to remain ‘on hold’ this week – Danske Bank

In opinion of Mikael Milhoj, Senior Analyst at Danske Bank, the BoE is seen keeping its monetary policy unchanged at it meeting on Thursday.

Key Quotes

“With respect to its meeting on Thursday, we expect BoE to stay on hold in line with consensus and market pricing”.

“That said, we think BoE will maintain its easing bias stating it stands ready to ease further if needed to support the economy”.

“We think there is more than a 50/50 probability of a cut at the next big meeting in February but it depends on whether the economy slows in Q4. We expect upward revisions to both the GDP growth and CPI inflation projections as economic data have been better than expected and due to the further GBP weakening”.