BOE’s monetary policy preview

Bank of England (BOE) is scheduled to announce its monetary policy at 11:00 GMT, will release minutes of meeting along with.

Pound is heading higher ahead of monetary policy announcement and is best performing major today and this week so far. Pound is currently trading at 1.536 against Dollar.

Bank of England (BOE) governor Mark Carney has reiterated his view of rate hike to be next probable path at turn of the year over and over again, still market participants remain doubtful over BOE's ability to hike rates.

According to Mr. Carney, Chinese slowdown is not likely to affect BOE's rate decision, however evidence of economic dockets suggest there are significant risks to UK economy from emerging market slowdown.

Preview -

• Monetary policy decision - No major change is expected from interest rates point of view, however hawkish tone in the policy statement might set the mood for Pound and Gilts.

• BOE minutes - Minutes would be closely watched by economists and market participants as it would include hawkish and dovish members. In last policy meeting, Ian McCafferty voted in favor of hiking rates, while another prior hawk Matin Weale kept his silence in favor of wait and watch.

Market is expecting at least 1 hawk in the team, Mr. Ian McCafferty (hope he hasn't changed his mind due to recent slowdown). Presence of any more hawks would be very bullish for Pound. Presence of three hawks would be very bullish for Pound as it would indicate presence of a new hawk, even if Mr. Weale votes to hike rates.