eFX Apex
The Institutional-Grade Data Hub
- Plus: Discretionary Trades
- Edge: Sentiment Trades
- Alpha: Systematic Trades
- Apex: Full Big Data Stream
Oct 14 (Reuters) - - When the Bank of England's most hawkish "internal" Monetary Policy Committee (MPC) member conveys dovish guidance on interest rates, traders should take note.
BoE chief economist Huw Pill said on Wednesday he's sceptical about market pricing four quarter-point rate hikes, to 4.75%, by Britain's central bank over the next year.
Pill wanted the BoE to raise rates to 4% in September, as did hawkish "external" MPC members Megan Greene and Catherine Mann.
The BoE looks set to increase its policy rate by 25 basis points from 3.75% on November 5, by a 7-2 vote. Subsequent quarter-point hikes are then fully priced by February, April and September 2027.
GBP/USD scaled a one-week peak of 1.3275 in Asia on Wednesday, after a dovish steer from New York Federal Reserve President John Williams weighed on the dollar. The pound rose to a 16-month high against the euro on Tuesday, at 1.1842.
Related:
GBPEUR

(Robert Howard is a Reuters market analyst. The views expressed are his own)