Research Team at BBH, expects that the BoE will keep policy is on hold
though there may still be one (and only one) MPC member that is
resisting, favouring a hike in its upcoming meet.
Key Quotes
“There have been four macro-developments for the MPC to consider. There has been a further drop in the price of oil. There is more confidence that the Fed will hike rates this month. The ECB eased. Sterling had appreciated 4% on a broad trade-weighted measure from the mid-October through mid-November. The consolidation gave way to a pullback, leaving sterling still about 2% higher.”
“Earlier this year, there were times when the market seemed more confident of a BOE rate hike than a Fed hike. Now it is quite a different story. By the time the BOE delivers its first hike, the Fed, even in a gradual mode, may already have lifted the interest rate target by 50-75 bp.”
Key Quotes
“There have been four macro-developments for the MPC to consider. There has been a further drop in the price of oil. There is more confidence that the Fed will hike rates this month. The ECB eased. Sterling had appreciated 4% on a broad trade-weighted measure from the mid-October through mid-November. The consolidation gave way to a pullback, leaving sterling still about 2% higher.”
“Earlier this year, there were times when the market seemed more confident of a BOE rate hike than a Fed hike. Now it is quite a different story. By the time the BOE delivers its first hike, the Fed, even in a gradual mode, may already have lifted the interest rate target by 50-75 bp.”
