GBP: Waiting for more balanced BoE speakers – ING

July 9, 2024 12:28 pm

Hawkish Bank of England (BoE) MPC member Jonathan Haskel said that he will vote for a hold at his final meeting in August. BoE Chief Economist Huw Pill to speak on Wednesday, ING’s FX strategist Francesco Pesole notes.

BoE speakers to shed light on the current Central Bank stance

“Hawkish MPC member Jonathan Haskel was the first to deliver remarks following the Bank of England’s quiet period around the election. He unsurprisingly said that he will vote for a hold at his final meeting in August as he highlighted inflation risks stemming from the tight labour market.”

“That may have helped the Pound Sterling (GBP) trade on the strong side for most of the European session yesterday, but it hardly provides an accurate snapshot of the MPC’s consensus. Tomorrow’s speech by Chief Economist Huw Pill, who is a more neutral member, should shed a brighter light on the current BoE stance ahead of key CPI data next week.”

“The calendar is empty in the UK today, and EUR/GBP held up quite well yesterday after the French vote result. We may be seeing some renewed pressure on the pair on the back of a rewidening in EGB spreads, but rate differentials will continue to point up ahead of the August BoE meeting, in our view.”

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