- Analytics
- News and Tools
- Market News
- Pound could suffer further over the short term if market’s conviction on a June rate cut grows – MUFG
Pound could suffer further over the short term if market’s conviction on a June rate cut grows – MUFG
The BoE vote that revealed the two voters for a hike previously abandoning that stance has fuelled renewed GBP selling. Economists at MUFG Bank analyze Pound’s outlook.
BoE shifts a little more toward a first rate cut
BoE left policy rate on hold for fifth consecutive meeting at 5.25%.
The overall message from the statement suggests as before – that returning inflation to target is proceeding but the point of being in a position to ease the monetary stance has not arrived.
The vote did highlight progress with an 8-1 vote as both Jonathan Haskel and Catherine Mann dropped their votes to hike. That alone justifies some increased probability of an earlier than we expect rate cut in June although whether the BoE ultimately moves in June or August remains a close call. We maintain our view of 100 bps of cuts this year.
The Pound could suffer further over the short term if the market's conviction on a June rate cut grows further and with that the potential extent of rate cuts in total delivered this year.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
