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### - POV - Thursday's BOE MPC.............>

STERLING
MNI (London)
STERLING: ### - POV - Thursday's BOE MPC announcement widely tipped to hike
25bps(88%-90% priced), 'correcting' the post Brexit referendum emergency cut.
From an FX perspective BOE Carney has used this rate correction as a carrot to
keep sterling buoyed but if the rate is hiked what then for the future rate
path. If market perception moves that it is just one hike then that's it
sterling will likely come under pressure so the chances are that the Bank could
renew the carrot by suggesting the market is underpricing a future hike. Traders
will be watching the vote split with forecasts ranging from 8-1 to 6-3 favoring
a hike. If the split is close it would suggest that a rate hike to follow could
prove difficult to gain consensus support and would counter any positive
sterling react. A vote split closer to 8-1 would leave the rate hike door open
and keep sterling buoyed. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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