BOE 50:50 on fresh round of QE

Today’s MPC vote could go either way on whether we see a renewed round of QE or not. I’m expecting that the global situation and poor domestic data will be enough to persuade the argument in favour of the doves but it’s quite possible that, similar to the RBA this week, we see a steady policy line with a change in language heralding QE next time around. This call could go either way so the best way to trade it is to wait for the announcement, and a spike one way or the other, before entering the market.