The split in votes is one thing but with the fact that they are hinting at peak inflation coming in lower while offering up a maybe on tightening aggressively, it's not exactly what the hawkish camp had hoped for. All of that covered here.
And when you throw in the fact that market pricing did look for 75 bps and the BOE "only" delivered 50 bps as per economists' expectations, it's enough to dial back some of the future pricing for BOE tightening.
Coming into the decision, the OIS market had fully priced the bank rate to be at 3% by November. That has now dropped to pricing in ~75% odds of 2.75% instead now. Adding to that, there have been consistent pullbacks for the 2023 meeting dates for the BOE by roughly 25 bps across the curve as well.
The pound dropped from 1.1350 to 1.1280 initially before holding around 1.1300 now against the dollar. It's not much of a sizable reaction as compared to the Swiss franc but the decision today will do little in terms of helping cable sustain any mildly positive momentum against the dollar if you compare this to how the Fed was yesterday.
