Economists at ING discuss the next Bank of England meeting and its implications for the British Pound (GBP).

Ample room for a dovish repricing to hit Sterling should data surprise on the downside

Unless the CPI shocks on the upside again on July 19, then the Bank of England could be happy with a 25 bps hike in August.

Markets are pricing in 44 bps for August and 145 bps in total, which leaves ample room for a dovish repricing to hit Sterling should data surprise on the downside. 

EUR/GBP is trading around recent lows and may be facing some upside risks to 0.8600 this week.