Bank of England’s Monetary Policy Committee (MPC) refrained from hiking rates in May given the slump in the first quarter GDP to just 0.1%.

The bank remains committed to raising rates later in the year if the economy bounces back.

Recent data from the UK indicates a slower than expected economy, with many releases falling short of expectations.

What do you think?

Will the BoE signal a rate increase for August? Or will traders be disappointed and drop the pound?

Market experts are divided into 2 groups

1. Bullish factors for the GBP
   • A softer Brexit may be on the cards.
   • The job market is strong in the UK.
   • Unemployment is at multiyear lows.
2. Bearish factors for the GBP
   • Wage growth slowed unexpectedly in April.
   • Q1 GDP dropped to just 0.1%.
   • Manufacturing data for April is the weakest since 2012.

What do you think?

Will the GBPUSD rise or fall?

What to expect from June’s meeting?

Bank of England (BOE) monetary policy committee members vote on where to set the rate.

Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation.

The BoE is widely expected to leave its benchmark rate unchanged at 0.50% at this meeting, but investors hope to have an indication of when the BoE will want to raise interest rates, potentially as early as August.

An indication of (early) interest rate hikes is generally seen as positive/bullish for the GBP, while vague indications or no indications at all are perceived as negative/bearish for the GBP.