FXStreet reports that in the view of economists at MUFG Bank, there is a high hurdle for the BoE to provide a hawkish policy surprise which should help dampen further GBP upside in near-term. 

“We believe that there is greater risk of disappointment which could trigger a temporary correction lower for the GBP. We expect the BoE to mainly stick to the policy message from August when they formally adopted a gradual tightening bias. We expect the BoE to acknowledge that Q3 GDP growth is likely to be weaker than expected (2.9%)”.

“The combination of slower growth and higher inflation creates a less favourable mix for the GBP, and with BoE rate hike expectations already well priced in for the next year. A stronger hawkish signal from the BoE will be required for the GBP to break through key resistance levels.”