Bank of England

The British Pound is being driven almost exclusively by expectations for a policy announcement from the Bank of England at their August 4th meeting - but what should you expect?

The Bank of England is on course to cut interest rates below 0.5% - a move that will be met with resistance.

Pound Sterling is sharply lower on Tuesday the 26th of July after a noted Bank of England Monetary Policy Committee member indicated he is now willing to vote to cut interest rates.

The Bank of England’s Financial Policy Committee (FPC) has cut the capital buffer placed on banks in order to try and mitigate against crystallising threats to the UK economy.

The GBP will take a cue from the Bank of England’s Governor Mark Carney who is set to outline his thinking on how Britain's economy is coping with last week's vote to leave the European Union in a speech on Thursday.

Sterling has rebounded slightly despite Bank of England members stressing the risks - not only to the UK economy but the world financial system - of a Brexit at their June meeting

Above: Victoria Cleland, Chief Cashier at the Bank of England, with the new five pound note. (C) The Bank of England.

The UK's first polymer bank note is due to launch on the 13th of September.

We have been warning over the past 24 hours that a number of key GBP pairs were looking incredibly overbought, and that a correction lower would be required to balance the market.

Pound sterling was a winner of what was arguably the most anticipated Bank of England inflation reports of recent times.

One analyst describes Thursday’s Bank of England event as a “colossal risk event for sterling” - we would agree that it is a risk, but colossal may be a little extreme.

The Bank of England’s Super-Thursday event is next week’s highlight for the British pound.

The Bank of England will surely have to take note of the fact UK prices are rising at a rate that is subduing economic growth.

The Bank of England Governor Mark Carney will next week give evidence to the House of Lords Economic Affairs Committee in its annual session with the Governor of the Bank of England.

If the UK votes to remain a member of the European Union on June 23rd the Bank of England will raise interest rates in November it is argued.

The British pound’s outlook rests with two factors, in our view: The EU referendum in June and UK inflation data.

The Bank of England's March decision has proved to be a positive for pound sterling which has advanced against the euro and US Dollar and keeping alive the prospects of better rates ahead.

The Office of Budget Responsibility has downgraded their forecasts for UK labour productivity, the most notable negative for pound sterling coming out of the budget.

Mark Carney, governor of the BOE, was mildly supportive of remaining in the E.U in a testimony to parliament on Tuesday.

The Bank of England has today announced that it will offer  extra cash facilities to the UK’s banks around the time of the EU referendum.

The British pound has made some hefty gains in the mid-week session despite poor data releases.