From the FXWW Chatroom: BOE Minutes: MPC Vote 7-1 for Unchanged Bank Rate; Forbes For 25bp Hike
-BOE MPC: Votes 8-0 To Keep Corporate Bond, Gilt Stocks Unchanged
-BOE Forbes: Q1 GDP Estimate Exaggerated The Extent of Any Slowdown
-BOE MPC: May IR Consistent With Greater Tightening Vs Yield Curve
-Some BOE MPC: Little Further Upisde News Needed to Warrant A Hike
The Bank of England Monetary Policy Committee voted 7-1 to keep the
Bank Rate at 0.25%. Kristin Forbes was again the sole member to vote for
a 25bps rise believing the preliminary Q1 GDP estimate exaggerated any
potential slowdown. Policy would be tightenend by a “somewhat greater
extent” versus the very gently rising path implied by the market yield
curve if the economy followed the path consistent with the May Inflation
Report projections. The MPC expected a closing of the output gap by the
end of the forecast period, when its tolerance for above-target
inflation would fall should wage growth pick up and demand not fall.
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