Danske Research previews next week's June BoE meeting.

"Hiking rates will have to be weighed against a considerable risk of exacerbating a looming economic contraction. We think it is most likely the BoE will remain sidelined for the foreseeable future, but the vote split could soon be back where only a slim majority stands in the way of hiking rates, " Danske notes.

"Market reaction. We will keep a close eye on the updated views of MPC members and the vote split, The relatively weak UK growth outlook and our dovish stance on BoE compared to market pricing weighs on our GBP call. We forecast EUR/GBP to move higher towards 0.89 on a 6–12-month horizon," Danske adds.