16 Feb 2015
BoE to remain ‘on-hold’ this year – Rabobank
FXStreet (Edinburgh) - In the view of Jane Foley, Senior FX Strategist at Rabobank, the BoE could stay on the sidelines this year and start its hiking cycle at some point during the spring 2016.
Key Quotes
“As disinflationary pressures took a hold in UK inflation indices, money market rates continued to push out expectations for the first BoE rate hike as far as late spring 2016 – a sharp contrast to the fairly hawkish outlook for the BoE that had persisted during the middle of last year”.
“Between mid-July 2014 and late January GBP/USD fell around 13%. The broad based strength of the USD was a major factor behind the move but as the market pushed out its expectations for the timing of the first BoE rate hike, the downside risks to GBP/USD were emphasised”.
Key Quotes
“As disinflationary pressures took a hold in UK inflation indices, money market rates continued to push out expectations for the first BoE rate hike as far as late spring 2016 – a sharp contrast to the fairly hawkish outlook for the BoE that had persisted during the middle of last year”.
“Between mid-July 2014 and late January GBP/USD fell around 13%. The broad based strength of the USD was a major factor behind the move but as the market pushed out its expectations for the timing of the first BoE rate hike, the downside risks to GBP/USD were emphasised”.