It seems to me that most of what Governor Mervyn King is likely to say in about 30 minutes is already discounted in the GBP price. Central bankers don’t like giving surprises so I think there’s been enough leaking to ensure that the revised forecasts on inflation and growth are now well expected.
The strong fall in EUR/GBP since this time yesterday has taken a lot of us by surprise so it will be interesting to see how the market reacts if the statement is as expected.