BoE: Expect No Fireworks – TDS
Research Team at TDS, notes that the BoE has said that it will be firmly
on hold until the EU Referendum is out of the way, so the broad
consensus of no change in policy.
“The accompanying Inflation Report and Press Conference will be where to focus. We think recent weak data is mostly related to heightened Referendum uncertainty, but will look carefully at the IR for the BoE’s interpretation. If they see something more than just Referendum-related uncertainty, it reduces the odds of a late-2016 hike in Bank Rate.”