BOE raises bank rate by 25 bps to 4.50%, as expected

• Prior 4.25%
• Bank rate vote 7-2 vs 7-2 expected (Dhingra, Tenreyro voted to keep rates unchanged)
• If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required
• Risks to inflation forecasts skewed significantly to the upside
• Pay growth could plateau at rates inconsistent with inflation target
• Estimates "flat" GDP for Q1 and Q2 (March forecast was -0.1% q/q for Q1)
• Full statement

Of note, the BOE has revised their projections to show a higher path for inflation as well as a big bump in terms of GDP forecast. That's a bullish take at least, with the rest of the decision and forward guidance being consistent with what is expected and what we have seen from the central bank Central bank A central bank is a financial institution that manages a country's monetary policy, and that often also includes issuing and/or monitoring the currency and regulating the money supply. Central banks also typically act as a lender of last resort to banks in times of financial crisis, and may also supervise and regulate banks and other financial institutions. Examples of central banks include the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan.The chief task A central bank is a financial institution that manages a country's monetary policy, and that often also includes issuing and/or monitoring the currency and regulating the money supply. Central banks also typically act as a lender of last resort to banks in times of financial crisis, and may also supervise and regulate banks and other financial institutions. Examples of central banks include the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan.The chief task Read this Term previously.

GBP/USD has caught a jump from 1.2575 to a high of 1.2615 before hugging closer to the 1.2600 mark now. As much as there are bullish elements to the report, I don't see this skewing the market pricing all too much as a 5.00% peak in the bank rate has already been nearly priced in beforehand.