25 Feb 2015
BoE might announce rate hike in Feb 2016, to support GBP further – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, expects BoE to announce its first rate hike in February 2016, and forecasts GBP/USD to hold between 1.52-1.55 through 2015.
Key Quotes
“We expect that the BoE will announce its first interest rate hike of the cycle in February 2016, this a little sooner than current money market expectations.”
“If UK money market rates continue to adjust towards our view sterling could find some additional support, though this is likely to be more marked against currencies which are being undermined by aggressive central bank policies.”
“Even though UK election uncertainty suggests that the sterling crosses could be facing a volatile period, the attraction of sterling has been underpinned by low levels of yields across much of Europe."
“We expect EUR/GBP to trend lower this year, but see cable holding between 1.55 and 1.52 through much of 2015.”
Key Quotes
“We expect that the BoE will announce its first interest rate hike of the cycle in February 2016, this a little sooner than current money market expectations.”
“If UK money market rates continue to adjust towards our view sterling could find some additional support, though this is likely to be more marked against currencies which are being undermined by aggressive central bank policies.”
“Even though UK election uncertainty suggests that the sterling crosses could be facing a volatile period, the attraction of sterling has been underpinned by low levels of yields across much of Europe."
“We expect EUR/GBP to trend lower this year, but see cable holding between 1.55 and 1.52 through much of 2015.”