BOE Official Bank Rate Decision Strategy 06/10/10

7:00am (NY Time) UK Offcial Bank Rate Decision  Forecast 0.50%   Previous 0.50%
ACTION: GBP/USD      N/A

UK’s BOE, Bank of England’s Monetary Policy Committee (MPC) is once again scheduled to release their interest rate decision today and the expectations are to keep both their official bank rates at 0.50% and APF (Asset Purchasing Facility) unchanged. The important focus as usual today will be the accompanying BOE Statement if they decide to release one, and it is customary that BOE only releases rate statement if there is a change to either the Interest Rate or APF program. 

With the new adminstration in place, Prime Minister David Cameron is preparing to cut public spending in order to avoid Greece like crisis, and an emergency meeting has been set for the 22nd of June as recent sentiment for U.K. economic outlook took a turn for the worse after Fitch Ratings commented on UK’s debt burden. 

With inflationary pressure leveling off towards the second half of 2010, as indicated by the recent Inflation Report out of UK, BOE is unlikely to hike interest rate, therefore this rate decision meeting is mostly likely going to be a no trade…

However, if BOE surprises the market by hiking rate, we’ll BUY GBP immediately.

Related posts:

1. Trade Plan For UK BOE Official Bank Rate Decision 07/08/10
2. BOE Official Bank Rate Decision 04/08/10
3. UK BOE Official Bank Rate Decision 03/04/2010
4. UK BOE Official Bank Rate Decision 02/04/10
5. UK MPC Official Bank Rate Decision (BOE Interest Rate) 12/10/09
6. BOE MPC Official Bank Rate Decision 01/07/10
7. BOE Interest Rate Decision – Forex News Trading Plan 11/04/10
8. Forex News Trading UK BOE Interest Rate Decision 04/07/11
9. Forex Trade Plan For Uk BOE Rate Decision 10/07/10
10. Forex Trade Plan For BOE Interest Rate Decision 09/09/10

Tagged as: Afp, Asset Purchase Facility, Bank of England, BOE, Consensus Expectations, Economic Indicators, GDP, Gdp Release, Inflation, Interest rate, interest rate decision, monetary policy committee, MPC, MPC Rate Statement, Official Bank Rate, Prelim, Quantitative Easing, Sterling, Stimulus, uk gdp