FXStreet reports that economists at Société Générale are discussing pound prospects in the light of the Bank of England meeting.

“Support to maintain the current pace of Gilt purchases and complete the GBP875 B programme in December as originally set out should still be in the majority vs those who think purchases should be curtailed. The bank is of the view that higher inflation is temporary, but inflation expectations one year out have drifted above 3%. A split vote could in theory be read as positive for sterling and a steepening in Gilts and swaps.” 

“The covering of short GBP/USD CFTC positions could lend support for a squeeze back to 1.3950 but 1.40 will be a tough slog without concrete guidance that QE will end this year.”