Citi discusses its expectations for the BoE policy meeting on Thursday.
"CitiFX Strategy has previewed the BoE this week, expecting no changes to the policy rate or APP. The biggest catalyst to FX movements will likely come from any hints around NIRP. Given the mixed outlook with near term risks and optimism for the medium term, there are doubts about the MPC’s conviction on the direction of monetary policy this week," Citi notes.
"We note vaccine optimism continues to keep the pound well supported, cushioning against the downturns in risk sentiment. This is likely to play out as a medium term catalyst should vaccinations result in a restart of the fragile UK economy," Citi adds.