BoE Could Hint Easing In 2020

While no changes in rates tonight, Bank of England (BoE) may hint a possible easing in 2020 due to tepid inflation. GBP/USD could fall lower.

BoE is expected to keep rates unchanged tonight. 

With Boris Johnson having the majority in Parliament, he will be able to get his Brexit deal through without much resistance by the end of January 2020.

However, UK business investment will remain pressured until an actual deal with the European Union (EU) is out.

Furthermore, PM Johnson’s willingness to leave the EU whether or not a deal is agreed upon means the uncertainty remains.

UK inflation has been subdued, having fallen to 1.5% in October and unchanged in November, which is short of their target of 2%.

Since the last meeting, UK’s economic data such as the manufacturing, services and construction sectors have all weakened. 

GBP/USD could head lower towards 1.2980 if BoE focuses on low inflation and easing in 2020.