Bank Of England Meeting In The Spotlight – Investing.com

  • Date: 25-Jun-2021
  • Source: Investing.com
  • Sector:Economy
  • Country:Gulf
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Bank Of England Meeting In The Spotlight – Investing.com

· BoE unlikely to shake markets today, minor upside risks for sterling· Dollar back in the ring as Fed lets the hawks out· Stocks elevated, another heavy dose of Fed-speak coming up
BoE set to maintain optimistic tone

All eyes will be on the Bank of England today. This is one of the smaller meetings without a press conference or updated economic forecasts, so any seismic policy signals are unlikely. Still, there is a risk that the BoE upgrades its language around the economy, which is firing on all cylinders.

Demand is booming across the UK as consumers have been unchained and the latest PMI surveys suggest this powerful spell of growth is likely to persist. Meanwhile, inflation already breached the BoE's target of 2% in May and seems destined to keep accelerating thanks to raging supply constraints, according to the same surveys.

The only cause for concern is the delay of the economy's complete reopening because of the new delta variant, but considering that this only affects a few isolated sectors, it shouldn't be a huge deal. The tariff threats from the EU have subsided, with the latest reports suggesting a ‘ceasefire' is imminent.

As for the pound, it got knocked