Bank of England to Assess Quantitative Tightening on Thursday; Market Focus on Inflation Guidance

According to Ebury analyst Matthew Ryan, the Bank of England is set to assess its quantitative tightening (QT) program at Thursday's policy meeting on July 29. However, Ryan notes that the evaluation may have limited impact on UK assets, as investors are likely focused on inflation guidance and voting divisions on interest rate decisions rather than the QT assessment itself. If the central bank maintains rates with a 7-2 vote and subsequent guidance downplays inflation risks, market expectations for future rate hikes could be reduced.
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