When is the BoE rate decision and how could it affect GBP/USD?

BoE monetary policy decision overview

The Bank of England (BoE) is scheduled to announce its latest monetary policy update at 12:00 GMT this Thursday, which will be accompanied by the release of Quarterly Inflation Report (QIR) and the policy meeting minutes. This will be followed by the post-meeting press conference at 12:30 GMT, where comments by the BoE Governor Mark Carney will play a key role in influencing the market sentiment surrounding the British Pound.
 
Meanwhile, Deutsche Bank’s economists expect a dovish message, with the BoE dropping its tightening bias and instead move towards an easing policy stance. “They note that domestically, data have deteriorated sufficiently to warrant more supportive monetary policy. Growth has slowed and is tracking below the Bank's "speed limit" of 1.5% with uncertainty likely weighing further on the near-term growth outlook.”

How could it affect GBP/USD?

As Yohay Elam, FXStreet's own analyst explains – Sterling has dropped below the uptrend support line that has been accompanying it since mid-October. Momentum on the four-hour chart is to the downside and the currency pair has failed to recapture the 50 and 100 Simple Moving Averages.
 
“Support awaits at 1.2785, which was a low point in late October. It is followed by 1.2750, 1.2705, and 1.2655, which were all stepping stones on the way up. Some resistance awaits at 1.2850, which provided support on Wednesday. Next, we find 1.2920, a support line from late October, followed by 1.2950, a resistance line from back then, and finally by 1.2980, he added further.

Key Notes

   •   BOE Preview: Three reasons why Carney's last Super Thursday may send GBP/USD down
 
   •   GBP/USD Forecast: BOE's outlook downgrade may hit sterling after losing support
 
   •   GBP/USD faces downside pressure near term – UOB

About the BOE interest rate decision

BOE Interest Rate Decision is announced by the Bank of England. If the BOE is hawkish about the inflationary outlook of the economy and raises the interest rates it is positive, or bullish, for the GBP. Likewise, if the BOE has a dovish view on the UK economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.