According to the economists at Bank of America (BofA), the Bank of England (BOE) is seen hiking the benchmark interest rate by 15 basis points (bps) on Thursday.
Read: BOE Preview: A rate hike or no rate hike, GBP/USD set to fall?
Key quotes
"We expect a 6-3 BoE vote to hike Bank Rate 15bp on Thursday. However, we do not think that decision is a foregone conclusion.”
“We expect BoE forecasts and communication to be consistent with fewer/slower rate hikes than the market prices.”
"With the market now fully priced for a 15bp rate hike, the risks are obviously skewed towards disappointment and a GBP sell-off, given the amount of rate hikes which are now priced in beyond this meeting.”
“Should the MPC decide to delay the hike, the temptation would be for markets to roll this into December, so any disappointment in GBP would likely be short-lived.”