BOE Super Thursday is here…
Simon French; Chief Market Economist at Panmure Gordon is of the opinion that the BOE is unlikely to raise rates significantly over the next two-three years.
He does talk about the risk of BOE eventually being forced to raise rates by 25 bps (reverse August move) if inflation continues to rise at a faster rate, but adds that a 25 bps rate hike is unlikely to derail the housing market.
French says a hint of an August rate cut reversal could send Cable higher to 1.30.
US dollar – No signs of trend reversal but the current move is merely a retracement of the ‘Trump Trade’