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Goldman, BofA, Barclays, Credit Agricole predict outcome of BoE's policy meeting - eFXnews

FXStreet (Łódź) - The eFXnews team note that analysts at Goldman, BofA, Barclays, Credit Agricole all believe that th eBoE will remain on hold at the October monetary policy meeting.

Key quotes

"GS: We expect rates on hold (Bank of England Bank Rate at 0.50%, in line with consensus) and for the BoE to maintain the stock of asset purchases at £375bn."

"BofA: The BoE is unanimously expected to leave interest rates on hold again in October, issuing no statement in the process, as is their protocol when monetary policy is left on hold. Moreover, we do not expect any more BoE members to have joined Weale and McCafferty in voting for an immediate 25bp rate rise at the meeting, with a little of the sparkle of the robust UK data releases over the last few quarters having come off a touch of late."

"Barclays: The BoE meets on Thursday and is widely expected to keep its policy rate unchanged at 0.5%, therefore issuing no statement and we would need to wait for the release of the Minutes (22 October) to get new information on the thinking of MPC members. As we noted in our recent FX Quarterly, we expect much earlier tightening from the BoE than is currently priced in SONIA rates. We look for an initial hike at the November MPC meeting and a 25bp per quarter pace of hikes to follow."

"Credit Agricole: In the context of below-target inflation and downside risks to the Eurozone outlook, the BoE is expected to remain on hold in September with the Bank rate unchanged at 0.5% and the Asset Purchases Facility at GBP375bn. We continue to expect the first rate hike to come in Q115, in line with consensus expectations."

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