As expected, the Bank of England (BoE) decided to keep the Bank Rate unchanged at 4.50% today. The vote split had a hawkish twist to it with 8 members voting for an unchanged decision and Dhingra voting for a 25bp cut, Danske Bank’s analyst Kirstine Kundby-Nielsen reports.
Gilt yields track slightly higher
“As expected, the BoE today kept the Bank Rate unchanged at 4.50%. The vote split was slightly to the hawkish side but we do not see this as a broad shift in sentiment within the MPC.”
“Overall, the statement revealed that BoE still favours a ‘gradual’ and ‘careful’ approach to easing monetary policy whilst highlighting heightened uncertainty.”
“The market reaction was modest with Gilt yields tracking slightly higher and EUR/GBP moving lower on the hawkish vote split.”
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