When is the Bank of England (BoE) interest rate decision and how could it affect GBP/USD? – by hareshmenghani BOE Inflation Recession GBPUSD Currencies
nterest rates for the 10th time in a row, by another 50 bps, to the highest level since autumn 2008. That said, signs of easing inflationary pressures might have already set the stage for a dovish pivot amid looming recession risks. Hence, the focus will be on the accompanying statement that provides the Monetary Policy Committee's economic and inflation projections.
Analysts at Wells Fargo offer a brief overview and write: “With recession on the horizon, we believe the BoE will take a more gradual approach to rate hikes. As of now, financial markets are priced for a 50 bps hike and our peer economists forecast the BoE to lift policy rates by 50 bps as well. However, we believe policymakers will take a more measured approach and lift rates by only 25 bps as they are now more focused on protecting against a prolonged recession.
Eren Sengezer, European Session Lead Analyst at FXStreet, offers a brief technical overview and explains: “GBP/USD failed to stay within the ascending regression channel coming from early January after having recovered within it late Wednesday. Additionally, the pair was last seen trading below the 20 and the 50-period Simple Moving Averages on the four-hourwith the Relative Strength Index indicator dropping below 50, highlighting the lack of buyer interest.
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