What Are Market Expectations For Tonight's BOE Meeting Results?

 The focus of today’s European session was the Bank of England (BOE) policy meeting which is expected to continue to maintain substantial support for the British economy, despite a major recovery in the economy and a high inflation spike.

This follows a statement from Governor Andrew Bailey that still seeing the recent rise in inflation is only temporary.

The UK inflation rate had soared to 2.5% in June, and the BOE said in its latest forecast that it would rise even further than the central bank’s 2% target.

However, analysts do not rule out the possibility that the central bank may begin to draw up plans on how to withdraw its stimulus.

With more than 70% of adults in the UK being fully vaccinated and most sanctions measures being lifted, the UK economy has overcome 10% of the recession experienced by 2020 and is expected to grow faster among the world’s developed nations.

While there is still uncertainty from the increase in Covid-19 cases around the world, BOE policymakers may have at least mentioned a reduction in their bond purchases.

Tonight, markets expect the BOE to release the latest forecasts on their growth and inflation, and the central bank is likely to issue a more optimistic statement on the economy and the current Covid-19 situation.

Analysts also expect that at least one or two policymakers will opt for tightening in July. If there are more than two people, the pound is expected to show a positive reaction tonight.

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