Dec 9 (Reuters) – The pound was flat against the dollar on Friday but still within striking distance of an almost six-month high as investors await major central bank policy meetings next week, including the Bank of England (BoE).
Economists expect the BoE to add another 50 basis points to Bank Rate next week, despite the economy falling into recession.
Still, they see the BoE as the most dovish in developed countries as it pushed back against market pricing for hikes at its last meeting in November.
“We don’t expect any major moves in the next few days as next central banks’ policy meetings are very difficult to call,” said Matthew Ryan, Head of Market Strategy at global financial services firm Ebury.
“In the longer term, we are positive on the pound as the market is currently pricing the worst-case scenario for the British economy, which we think is slightly overdone,” he added.
The pound was flat versus…
