What Are the BOE’s Goals?
Their main goal is to promote the good of the people of the UK by maintaining monetary and financial stability.
The BOE is responsible for making sure that prices within the UK are stable and that their currency, the Great British Pound (GBP), retains the highest level of confidence among the public.
The BOE is also responsible for protecting and enhancing the stability of the UK’s financial system by managing the systematic risks involving financial institutions, markets, and market infrastructures.
Dovish VS Hawkish
The MPC members are distributed on a scale from Dovish to Hawkish. The dovish tend to be pessimistic and view the economy in need of stimulation; therefore, they tend to decrease bank rates and, thus, increase money supply.
However, the hawkish are on the other extreme end with an optimistic view of the economy; therefore, they tend to increase bank rates and, thus, decrease money supply and control inflation.
The remaining policy members include a minority titled the “Centralists”. They usually look at the market and tend to be data-driven, focusing on what actually is happening in the market.
Mark Carney, chairperson of the MPC and Governor of the BOE, is considered to be a Centralist; however, he leans closer towards hawkishness rather than dovishness.
How to Trade the MPC?
GBP Strengthens Slightly
Please note that the above directional suggestions do not take into account the current Geopolitical or Market positioning pressures that could easily cause the opposite to occur. With this in mind, it is always beneficial to keep yourself abreast of the current market conditions when planning your trades.
The Bank of England Interest Rate
The Bank of England left its benchmark interest rate unchanged at 0.75% on December 20th, 2018, as widely expected. It remained the highest rate since March 2009.
2019 MPC Meeting Dates
The MPC usually meet 8 times a year, each of which they announce their bank rate decision and release the minutes at the conclusion of the meeting. Below is a table of the upcoming meetings and the market’s reaction to the decision of the previous meetings. The dates of the meetings are as found in Forex Calendar.