Research Team at RBS, suggests that the Bank of England holds its
December monetary policy decision, and we do not expect a change in
interest rates by the Bank of England.
Key Quotes
“The November Inflation Report suggested the MPC is in no hurry to hike the policy rate, but with the FOMC meeting just one week away an unchanged stance by the MPC may be that-much-more prudent next week.”
“More broadly, we think there has been a breakdown in the market sentiment in that the BoE’s MPC will “follow” the FOMC, leading short-term interest rate spreads to move significantly in favor of the USD vs. the GBP.”
Key Quotes
“The November Inflation Report suggested the MPC is in no hurry to hike the policy rate, but with the FOMC meeting just one week away an unchanged stance by the MPC may be that-much-more prudent next week.”
“More broadly, we think there has been a breakdown in the market sentiment in that the BoE’s MPC will “follow” the FOMC, leading short-term interest rate spreads to move significantly in favor of the USD vs. the GBP.”
