today is cable day.
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if - No Change: Swissquote
Perhaps the most surprising view comes from Arnaud Masset at Swissquote Bank.
Masset says because the BoE will only be able to cut interest rates a couple of times before reaching negative rates, it will likely opt keep its powder dry.
“The BoE has limited room for manoeuvre before switching to negative interest rates. Therefore, we expect the central bank to leave its benchmark rate unchanged at its next meeting on August 4th, waiting for further information about the implication of Brexit for the UK economy,” says Masset.
If Masset is right expect a sharp pop higher in the British Pound as those 100% expectations for a rate cut are rapidly unwound.
On the other hand, says Masset, the BoE could increase the target for asset purchases without cutting rates.
don't predict direction, but dance with flow of water
