Bank of England Monetary Policy Summary
The Monetary Policy by the BOE Is Expected Dovish
Starts Tuesday, August 21, 2018 at 17:41
Updated Thursday, August 2, 2018
The summary by the Bank of England gets released at the same time as the decision regarding interest rates. The monetary policy summary and the press conference usually take the attention because the decision regarding interest rates is mostly priced in by the time it happens.This time, the summary is expected to be dovish even though the BOE is widely anticipated to increase interest rates. The situation regarding the international trade war that the US President Donald Trump has waged and as well as the ongoing Brexit process make the outlook pretty gloomy for the UK economy. BOE Chairman Mark Carney mentioned these dangers last week, so the consensus in the market is that the BOE will follow the rate hike with a dovish statement.Please follow us for a live coverage in real time of the event by experienced analysts.
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About Bank of England Monetary Policy Summary
The monetary policy summary is one of the main ways that the Bank of England (BOE) communicates with the public. The monetary policy is very important for the currency because, through it, the BOE injects or extracts liquidity into the system, which in turn affects the GBP. The GBP tends to rally when the summary is more hawkish. A more hawkish statement means that the economy is doing well. The BOE is likely to tighten the monetary policy by increasing interest rates or withdrawing money from the financial system. The monetary policy summary also shows the BOE members’ votes on interest rate moves, increasing the importance of this statement.