Hawks Gaining Strength At Bank Of England Likely To Hike Rate Soon

Hawks are gaining strength at Bank of England are most likely to hike the rate soon. Federal Reserve is also thinking about increasing the interest rate. Market analysts are of the opinion the Bank of England will follow the FED. Rather Bank of England will lead the FED. As a GBPUSD trader expect this rate hike sentiment give a 1000 pip move in the market.

The central bank’s Monetary Policy Committee (MPC), which makes interest rate decisions and has kept its base rate at 0.5 percent for more than six years, may start showing signs of a more pro-rises stance at next Thursday’s meeting.

Many economists are now expecting a 7-2 split in the committee, rather than the unanimous 9-0 in favor of maintaining rates at 0.5 percent last time around. Martin Weale and Ian McCafferty, widely seen as the committee’s two most hawkish members, are viewed as the two most likely to want to raise rates. There are a couple of other members who are outside bets to take the leap.

Now this is a fact. Central banks still rule the markets with their interest rate decisions and their decision increase or decrease the money supply with buying/selling bonds. Who would you bet on Markets or the Central Banks?

Who’d be a central banker? As soon as you restore bond and equity markets to calm or even optimism, investors start fretting about something else.

Most major Western economies have returned to economic growth, and countries which were causing sleepless nights just a couple of years ago, like Spain and Ireland, appear to be market darlings once more. Volatility is back to lovely, comfortable pre-crisis levels.