The BOE has left rates and policy on hold as expected but the lack of any accompanying statement has given fright to the bears and we’ve seen a decent rally after dipping ahead of the release.
Carney will keep his powder dry, and the market guessing, until the inflation report next week on 7 august
The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £375 billion.
The Committee’s latest inflation and output projections will appear in the Inflation Report to be published at 10.30 on Wednesday 7 August. As previously announced, the Committee will also respond to the Chancellor’s request for its assessment of the use of thresholds and forward guidance at that time.
The minutes of the meeting will be published at 9.30am on Wednesday 14 August.
GBPUSD is higher at 1.5240 from 1.5165 and EURGBP has broken down through 0.8700 to 0.8686 just ahead of strong buying interest at 0.8675-80