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July 2016

BoE likely to cut rates this super Thursday

Published: Monday 11 July 2016

Politician Andrea Leadsom has quit the run for the conservative party. The Pound rallied a little this morning as this could be down to a bit of certainty regarding Britain’s next PM. That said, there were rumours of Michael Gove getting back in on a legal technicality but was quickly dismissed by Gove.

Focus for the week very much turns to the BoE minutes on Thursday whereby Carney will outline future stimulus programs along with a possible rate cut. Research team at BBH suggested the BoE is more likely to cut rates when they meet on Thursday. It will be the first time the BoE to consider a cut in interest rate in more than 7 years as they seek to contain the economic fallout from the Brexit vote. Mark Carney laid down majority of the groundwork for an interest cut when he carefully orchestrated a market intervention a week after the Brexit vote.  

Latest FX news by Michael Hart