Bank of America Global Research discusses its expectations for this week's BoE December policy meeting.
"We expect little news from this week's Bank of England (BoE) policy meeting and a unanimous vote to keep policy on hold. Brexit news remains the potential near-term catalyst for a change at the BoE. If markets become jittery, the BoE could increase the QE purchase pace at short notice. We would expect rate cuts into negative territory in a no-deal scenario, but that would need to wait until February we suspect. With the latest mood music from negotiations much more positive those tail risks seem less pressing today," BofA notes.
"GBP remains fixated by Brexit. Fundamentals will have to wait until 2021 as a driver for GBP," BofA adds.