BoE Policy Meeting Preview

Bank of England Governor Mark Carney had stated back in July that the Monetary Policy Committee's decision regrading the timing of adjustment of interest rates would come into relief during the turn of the year. This is yet to happen.

Some EM countries' slow growth, along with GBP strength indicates that MPC is way far from taking a call on the timing of UK's cost of borrowing hike.

The policy makers are expected to feel relieved that ECb policy announcements in December did not put pressure on EUR/GBP ahead.

"Overall, we maintain our view that the Bank is unlikely to raise rates before August 2016 and expect McCafferty to remain the lone hawk at the December policy meeting", says Rabo bank in a research note.

The Q2 GDP growth was expanding at a very strong pace of 0.7% qoq on the services sectors strength, when the real wage increases on monthly basis become more established.

The headwinds of Sterling strength appears to overshadow the strength of domestic economy, along with a weaker manufacturing sector and continuing concerns on China's growth momentum.

GBP/USD is currently trading at 1.5011, while EUR/GBP is trading at 0.7269.