The Bank of England convenes to make its March decision in the shadow of the EU Summit on Brexit and amid mixed data from the UK. How will it impact the pound?
Here is their view, courtesy of eFXnews:
Bank of America Merrill Lynch FX Strategy Research discusses GBP outlook, going into the BoE meeting on Thursday.
“We expect the Bank of England (BoE) to stay hawkish at Thursday’s policy meeting. We still assume the BoE will hike rates in May and it will continue to signal that. We expect a 9-0 vote to keep rates on hold, though there is a chance of a vote or two for hikes. This call has nothing to do with the data, which have disappointed,” BofAML argues.
From a strategy perspective, we think markets are focused on their views on the labor markets. In our view, any disappointment from a dovish MPC would present a buying opportunity,” BofAML advises.