Economists predict UK rate cuts in December, after narrow vote to hold Bank Rate at 4% today
The pound is trading near a seven-month low this morning, as the City awaits the Bank of England’s decision on interest rates.
Sterling is up just 0.1% against the US dollar at $1.3064, having threatened to fall below $1.30 earlier this week for the first time since April.
Yet fresh dovish signals from the BoE today could validate further downside, keeping momentum stretched and positioning skewed.
“There’s obviously a list of possible tax measures, but raising taxes on banks is a long way down that list,” said one person briefed on her thinking.
Another person close to the process said: “She is not minded to do this.” A third person said: “Banks are already paying a lot of tax. We aren’t going to do it.”