Cable slips before BoE. Economists at Société Générale expect the GBP/USD pair to receive a shot in the arm if the “Old Lady” hikes by 25 bps without hinting at a pause.

Will BoE signal a pause?

“A 25 bps rate increase today by the BoE could in theory give GBP/USD another shot in the arm provided the bank does not signal a pause.”

“Push-back by Governor Bailey against market pricing of a peak at 4.75%, or a lower inflation forecast in two years, could snuff out positive Sterling momentum.” 

See – BoE: Banks Preview, another 25 bps hike, but will it be the last?