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For BoE’s coverage, we provided news, analysis, opinion pieces and special live videos on real-time. And since 2015, we anticipated BoE’s rate cut movement before it happened. It was yesterday when the Bank of England decided to cut rates from 0,50% to 0,25% with a surprising unanimously 9 – 0 votes in favor of a rate cut.
On 25th March 2015, our Editor and Analyst Omkar Godbole, anticipated the rate cut movement on his report Could BOE turn dovish and cut rates? : “A strong Pound against the largest trading partner not only hurts exports, but also risks importing deflation. Moreover, the situation is unlikely to correct, especially since the ECB is purchasing EUR 60 billion per month. A hawkish Fed, as well as the delay in the US interest rate hike would both eventually result in a strong Pound. Thus, the BOE could be forced to turn dovish in the days ahead.”
On the report, there’s a clear message: the BoE would be forced to cut rates as other Central Banks eased aggressively.
Do you want to know the shocking statements that followed Omkar’s report? Keep reading to find out his declarations about its possible impact during 2016!
Is EUR/GBP chart indicating BOE rate cut ahead? (29th September 2015)
“In the last six months, it has become more evident that there is a need to re-develop demand in the global economy. China’s slowdown and the shift in the PBOC’s FX policy and interest rate cut followed by a retaliatory action by other Asian and EM central banks only highlights the battle for maintaining export share has resumed. The ECB also stressed its readiness to do more, while speculation that the BOJ may expand its stimulus next month is already on the rise. Consequently, it is difficult for the BOE alone to stay hawkish and/or hike rates.”
BOJ: Risk-on, but no fireworks, BOE to cut rates? (29th January 2016)
“The cable is down 1%, which clearly indicates the markets believe negative rates in Japan would force the Bank of England to delay its rate hike even further. EUR/USD is down as well, again due to speculation that ECB would have to do more. More pressure on the ECB also means pressure on the BOE. BOE benchmark rate stands at 0.5% and the bank certainly has room to cut rates, given the ECB, SNB and BOJ are in the negative territory.”
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