- 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 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.