The first Bank of England meeting after Brexit

Posted Thursday, July 14, 2016 by
Skerdian Meta • 1 min read

The Bank of England (BOE) will hold its monthly meeting shortly. They will publish their monetary policy summary and the official bank rate which is the interest rate that the BOE charges/offers to the second level banks. Until a month ago the projections were for an interest hike, although all nine members voted to keep the rates unchanged. 

Somehow the Pound seems uninterested about the upcoming meeting

Now everything has changed though, the Brexit vote has shifted the balances. Now all members are expected to vote for a cut in the interest rates, from 0.50% to 0.25%. That might or might not send the Pound lower. I mean the chances are that it will but depends how much  an interest rate cut is priced in already. Anyway, try to look for clues about further monetary easing in the statement. If there are they will be the biggest mover. 

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