BoE Preview: Hold for now - TDS
Analysts at TD Securities expect the BoE’s MPC to leave policy on hold on Thursday.
“The policy backdrop has deteriorated somewhat since their November meeting--in particular with regards to activity data and political uncertainty--so the MPC might come out with a slightly more cautious tone.”
“FX: Our base-case expectation for a slightly more-cautious BoE suggests sterling's capacity to rally meaningfully into year-end is limited. With Brexit-related catalysts likely to wane until early-January, any marginal drivers that do emerge for the major GBP pairs are likely to rotate to the non-sterling leg.”