The Bank of England took a look at falling inflation but say 'Nope' to rate cuts this time around, as expected.
ICYMI:
- ForexLive European FX news wrap: BOE keeps bank rate on hold
- Why the dovish BoE didn't trigger a more sustained drop in the GBPUSD pair?
- A quick summary of the BOE press conference
The JP Morgan response is blunt, saying the Bank is reluctant to commit to a specific monetary policy path ahead. JPM say the Bank has shifted dovish, citing downward revisions to BoE inflation forecasts. And add that the implied path of rates by market pricing seems to be accurate.
- says the BoE “opened the door to a June cut. We stick to our call for a first cut in August but upcoming wage and inflation data may need to surprise .. to the upside to derail a June cut".
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June is in the market's crosshair for a rate cut but August instead is a possibility.
Bank of England Governor Bailey
