This week’s Bank of England (BoE) meeting is widely expected to deliver another 25bp rate hike, taking the base rate to 1.00%. In the view of economists at Credit Suisse, the “Old Lady” would have to deliver a hawkish outcome to lift the pound.

GBP unlikely to present a clear case to buy any time soon

“We suspect the BoE would need to deliver a clear hawkish outcome such as a 50bp rate hike to change the negativity surrounding the currency.” 

“With the May 5 UK local elections in focus, and the prospect of poor outcomes and perhaps a leadership challenge for Boris Johnson, it seems unlikely that GBP will present a clear case to buy any time soon.”