In case you missed the episodes from earlier:
That makes the BOE the final decision on central bank policy for the year. But unlike the Fed and BOJ, this one should be less inconsistent and simpler.
It is expected that the BOE will keep the bank rate unchanged this time and that they will maintain their ongoing communication. That “a gradual approach to the removal of policy restrictions remains appropriate”.
They will continue to emphasize that they cannot move too quickly in cutting rates according to the balance of risks. And that there is still work to be done regarding inflation, although the deflation process is still on the way.
All in all, it shouldn't be anything too new for sterling. Traders have fully priced in the decision that the BOE would keep the bank rate on hold. But looking out to next year, ~51 bps of rate cuts are priced in. So, that's the main thing to look for according to the language of the policy.
However, as mentioned above, I doubt that this is the time for the BOE to make waves. But they could drop some hint on the outlook for prices, wages, and economic developments. So, we'll see. Otherwise, things should play out quite simply.
As for the bank rate decision, it is widely expected that we will see an 8-1 vote to keep rates unchanged. Dhingra should be the only dissenter in favor of a 25 bps rate cut.
