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22 Aug 2014
GBP - at the mercy of the BoE? - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank noted that the publication of the minutes of the Bank of England’s August MPC meeting confirmed that two members of the nine person committee voted in favour of a rate hike this month.
Key Quotes:
“Sterling, however, saw little sustained reaction. Even though it appears that the Bank is edging closer to the first rate hike of the cycle, the arguments made by the doves are compelling”.
“Since the August meeting took place both wage inflation and CPI inflation data releases have been weaker than expected”.
“We remain of the view that the BoE will not hike rates until May 2015, at the earliest. That said, we retain a preference to sell EUR/GBP on rallies on the back of weak Eurozone data and the risk that the ECB will continue to threaten further monetary policy accommodation”.
Key Quotes:
“Sterling, however, saw little sustained reaction. Even though it appears that the Bank is edging closer to the first rate hike of the cycle, the arguments made by the doves are compelling”.
“Since the August meeting took place both wage inflation and CPI inflation data releases have been weaker than expected”.
“We remain of the view that the BoE will not hike rates until May 2015, at the earliest. That said, we retain a preference to sell EUR/GBP on rallies on the back of weak Eurozone data and the risk that the ECB will continue to threaten further monetary policy accommodation”.