May 04, 2022 - 12:51 PM 266 views
The Bank of England (BoE) is largely expected to raise the base rate by 25 basis points at its meeting this week, bringing it to 1.00 percent. According to Credit Suisse experts, the "Old Lady" would have to give a hawkish verdict to strengthen the pound.
The GBP is unlikely to make a compelling case for purchase any
"We strongly believe that the Bank of England (BoE) would
need to provide an unambiguous hawkish outcome, including a 50bp rate hike, to
alter the currency's negative perception."
"In focus of the UK local government elections on May 5th,
and the likelihood of getting disappointing results and possibly of a
leadership challenge for Boris Johnson, it appears unlikely that the Great
Britain Pound (GBP) will give a compelling reason to buy any time soon."