Sterling steady ahead of BoE minutes
22 May 2007
22.05.2007
Sterling
remains steady against both the Euro and the Dollar as the market eagerly awaits the release of the Bank of England minutes from their meeting earlier this month. Expectations are for the minutes to reveal an 8-1 vote in favour of the 25bps hike, with Blanchflower voting for rates to remain unchanged. The market is also likely to pay close attention as to whether or not the committee discussed the possibility of a 50bps move.
This follows a less hawkish than expected quarterly inflation report last week, coupled with very disappointing retail sales figures last week resulting in some commentators questioning whether or not further tightening is required.