Rational Thinking – Sterling Falls As Boris Moves Closer To Becoming Prime Minister Last week: GBP BoE holds rates constant at 0.75% Q2 growth forecast cut to 0.2% from 0.0% MPC concerned about global trade tensions USD FOMC leaves benchmark rate unchanged Inflation forecast has been lowered Rate cut almost certain in July EUR Draghi points to 10bps cut in September ECB will roll out new targeted lending scheme Bank previously indicated rates would remain on hold This week: USD Trump and Xi expected to meet in Tokyo Negotiations are expected to resume GBP Johnson and Hunt fight for Tory leadership Boris likely to come out in front