No changes in the BoE for the next 12-months – Danske Bank

The Bank of England should remain on hold for the next 12-months, according to Chief Analyst at Danske Bank Pernille Henneberg.

Key Quotes

“GBP was sold off yesterday with EUR/GBP above 0.8450 despite the BoE maintaining its hawkish twists, i.e. the BoE thinks the current market pricing of BoE hikes will be a bit too soft should the economy live up to expectations. We still expect the BoE to remain on hold for the next 12 months”.

“While we think it is unlikely that the BoE will tighten monetary policy in a time of elevated political uncertainty, we think we need to see substantially slower growth and/or higher unemployment before easing becomes likely again”.