BoE could cut rates tomorrow – TDS

FX Strategists at TD Securities believe the ‘Old Lady’ could lower the refi rate by 20 bp at tomorrow’s meeting.

Key Quotes

“The rate decision is down to a coin toss, with the big question being whether the current outlook is “broadly consistent” with the August IR, something that’s open to interpretation and is likely to be hotly debated within the MPC”.

“We think that majority of the MPC will lean toward yes and vote to deliver an additional 20bps rate cut, but it’s almost certain to be a split vote”.

“With rates markets pricing in almost nothing for next week, positioning for a rate cut may provide good risk-reward”.