Lower than expected UK CPI data, Bank of England policy decision today now close to 50/50

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Lower than expected UK CPI data, Bank of England policy decision today now close to 50/50

UK inflation data came in below the median estimate on Wednesday:

• UK August CPI +6.7% vs +7.0% y/y expected
• A one and done case for the BOE now?
• BOE rate hike odds for this week now a near coin flip
• BOE likely to keep bank rate unchanged tomorrow - Goldman Sachs

Goldman Sachs had been forecasting a rate hike from the Bank's Monetary Policy Committee but changed that to now expecting an on-hold decision.

JP Morgan say:

• 
  
  
  
  "We stick with our call for a hike, but now see this as a
  
  coin toss"

The statement from the Bank is due at 0700 US Eastern time:

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: Lower than expected UK CPI data, Bank of England policy decision today now close to 50/50

forexlive.com