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Sterling risks 82-month lows on dovish Bank of England
The Bank of England is likely to leave interest rates on hold at Thursday's meeting potentially on a 9-0 vote with McCafferty dropping calls for a hike while the policy summary is likely to be more downbeat. The dovish tone will be tempered by the impact of low oil prices on spending and recent Sterling weakness on inflation. It is also the case that Sterling selling ahead of the decision will limit the scope for further losses after announcement. Nevertheless, overall sentiment is being undermined on economic and political grounds and Sterling is vulnerable to near seven-year lows below 1.4200 against the dollar ... (full story)