{"id":76425,"date":"2024-02-01T11:41:51","date_gmt":"2024-02-01T09:41:51","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=76425"},"modified":"2025-12-11T13:47:19","modified_gmt":"2025-12-11T11:47:19","slug":"pound-traders-focus-on-boes-interest-rate-decision","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/th\/pound-traders-focus-on-boes-interest-rate-decision\/","title":{"rendered":"Pound traders focus on BoE\u2019s interest rate decision"},"content":{"rendered":"

On a monetary level, we highlight the release of BoE\u2019s interest rate decision today. The bank is widely expected to remain on hold, with GBP OIS implying a probability of 98.81% for such a scenario to materialise. It should be noted that the UK CPI rate slowed down considerably over the past year yet jumped slightly in December at which period prices rose at the rate of 4% yoy. The release tended to showcase that there is still work to be done before inflation returns to the bank\u2019s 2% target. It\u2019s characteristic that GBP OIS imply that the market expects the bank to start cutting rates in the June meeting and deliver in total, 4 rate cuts within the year. Hence, we would expect the bank to maintain a confident tone in the accompanying statement, implying that rate cuts may happen within the year, yet that it would be premature to start discussing them. Such a scenario may provide some support for the pound, especially if it\u2019s implied that the rate cuts are due after the summer. On the other hand, should the bank seem uncertain we may see the pound slipping. Also, we note the vote count in taking the decision, as should more MPC members vote in favour of rate hikes, we may see the pound getting some support.<\/p>\n\n\n\n

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