###POV: The market is treating Thursday's.......>

BOE: ###POV: The market is treating Thursday's Bank of England meeting as a

staging ground before the main event in August when the MPC is next expected to

raise rates:

- According to MNI PINCH the market-implied probability of a 25bps hike at the

June meeting is less than 2%, but jumps to 45% for August.

- While the jury is still out on whether the Q1 slowdown was a temporary blip or

the start of a more pronounced deceleration in economic activity, the BoE can

cite a slew of recent positive data releases (services PMI, retail sales and

CPI) to support a hawkish trajectory for the bank rate.

- Hawkish Risk: BoE emphasises importance of the August meeting and the strength

of recent data. Continues to assert that the Q1 slowdown was transitory.

- Neutral: The BoE makes no firm indication that August will be a 'live'

meeting, but highlights the recent improvement in economic data.

- Dovish Risk: In light of weak Q1 data and stronger coincident data, the BoE

adopts a 'wait-and-see' approach, effectively delaying a decision on raising

rates until later in the year.