BoE Preview: A dovish-leaning outcome should propel EUR/GBO above 0.87 – Scotiabank

Economists at Scotiabank analyze GBP outlook ahead of the BoE policy decision.

Initial GBP reaction may reflect how deep – or not – the dissent runs on the MPC

The Bank is expected to hold its key rate at 5.25% although the decision may reflect some dissent with up to 3 of the 9 policy makers voting for a hike. 

The initial GBP reaction may reflect how deep – or not – the dissent runs on the MPC today. 

A dovish-leaning outcome should drive a bit more GBP underperformance on the crosses (EUR/GBP above 0.87).