James Knightley, analyst at ING noted the forthcoming BoE and inflation report
and has forecasted lift off from the BoE in Q2 2016 with risks of Q1
also.
Key Quotes:
"The BoE is unlikely to be
quite so bold as it would raise clear credibility issues as to why it hasn’t
raised interest rates, but we would still expect the BoE to nudge higher its CPI
projection while keeping its growth and unemployment forecasts broadly
unchanged."
"This should be enough to suggest to financial markets that
the market is being too cautious in predicting that the first rate rise is still
at least 12 months away."
"We are predicting a 2Q16 move although the
risks are edging back towards our previously long-held view of a 1Q16 hike. In
an environment of more ECB stimulus looking likely in coming months this should
keep EUR/GBP under significant downward pressure."
