The Bank of England has kept a balanced bias this year despite the global and the UK economy weakening considerably and several sectors falling in recession. Although, it was clear that they were on a wait-and-see mode before politics decided on Brexit.

Now the Brexit course is set after the elections and BOE members are giving out dovish signals. Yesterday we heard chairman Mark Carney deliver such comments, and today it’s BOE policymaker Silvana Tenreyro who is sounding dovish. Below are her comments:

• My inclination is towards a rate cut if downside risks emerge
• Risks are tilted to the downside
• Expects inflation to stay below target still
• Expects pay growth to be sustained in the early part of 2020
• UK labour market is very tight, but not tightening further
• Very hard to think that this is the peak of the labour market
• We will be discussing possibility of stimulus in the coming months
• Key input on rate decision is how uncertainty unwinds

Apart from employment which she seems confident about and which is in a decent place in UK, everything else seems to be heading down, according to her. Risks are tilted to the downside and she favours a rate cut.

GBP/USD is not minding these comments much, but if such comments keep coming from the BOE, then the GBP will turn bearish sooner or later.