- The market expects the BoE to hold rates steady at 0.75%
- Mark Carney is likely to express continued concern over Brexit and global growth headwinds
- The market believes that this will be a dovish hold on the base rate
The Bank of England will today decide on whether to cut or hold rates.
It’s widely believed that the Bank will hold as UK data has largely held up well whilst other economies have faced contraction amongst manufacturing and services.
Labour data is largely still strong whilst the falling pound has kept UK exports strong in the face of falling global demand – the UK is largely an exporter of services globally and this has been a main beneficiary from lower Sterling with the last services PMI reading 51.40.
There could be some talk of what will happen to the BoE’s balance sheet, but the market thinks that the Bank will maintain its current policy of rolling over maturing debt held rather than add or look to contract its holdings.