Danske Bank: The Central Bank of the United Kingdom is expected to stand pat, and the market reaction is expected to be quite mild

Jinshi Data December 19th News, Danske Bank said that the UK Central Bank is expected to maintain the bank’s interest rate at 4.75% on Thursday, consistent with the market consensus and market pricing. The voting result is expected to be 8 to 1, with the majority of people voting to maintain the status quo, and Commissioner Dingle is expected to vote in favor of a 25 basis point rate cut. Since the November meeting, the data has generally been in line with the expectations of the UK Central Bank, so the bank has reason to continue to signal that it will only gradually relax its monetary policy. The market’s response to this statement is expected to be relatively moderate. Overall, we tend to expect a dovish trend for the pound, and there may be some upside potential for the euro/pound. From a broader perspective, we expect the euro/pound to decline in the coming quarters, due to the UK Central Bank currently lagging behind its peers in the easing cycle, and the UK economy performing well with a tightening interest spread. The key risk facing this forecast is that the UK Central Bank may relax its policy more forcefully.