BoE without any changes according to Goldman Sachs
At 1:00 PM Bank of England (BoE) will publish a decision on interest rates and minutes of the MPC meeting. There is no place for a press conference and updated inflation forecasts, but investors are still eagerly waiting for the decision. Goldman Sachs is cooling moods and does not expect major changes in monetary policy.
Since only a week ago the markets have seen the results of the parliamentary elections in the UK and the situation of the future government is uncertain, the Bank of England will probably refrain from any decisions and will instead present an unchanged view of the economic situation.
The result of the vote on interest rates is in favor of maintaining the current levels. In May MPC representatives were quite skeptical about the outlook for tightening monetary policy.
The BoE will want to wait until August when it releases inflation and economic forecasts, only to share its opinion on the path of interest rates.
Goldman Sachs in the next 12 months does not anticipate any major changes in PolMon’s valuation until the end of 2018. As a result, the Sterling should not react to BoE reports today and during future meetings.