Political activities continues to make the BoE job more difficult. What seems like a perpetual dance with political crisis, the UK PM once again avoided a breakdown in government with a defeat of a bill that would have given MPs the power to stop Britain leaving the EU. But in this rolling crisis we know that it is only a matter of time before the next political crisis appears.
For the BoE this make calculating policy difficult. Since the BoE's last meeting, UK growth has moderated and expected recovery from harsh winter weather has been slow moving.
With downgrading in GDP growth for 2018 and limited wage pressure, the BoE is unlikely to move before August while that data is even challenged. Of course throwing in the UK-EU Brexit negotiation just ramps up the uncertainty level. For today's meeting we are expecting no changes with acknowledgement that economic data has not firmed as expected.
GBPUSD failure to move above 1.3150 indicated extension of bearish momentum.
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