MUFG Research discusses its reaction to today's BoE policy decision.

"The BoE hiked by 25bps to 4.50% as was widely expected and implied by OIS pricing. The MPC vote  of 7-2 was also as expected. The key guidance from the MPC today was another carbon-copy of the guidance given in March, which was the same as in February. Further evidence of inflation pressures would therefore mean more hikes," MUFG notes.

"We do not see today’s policy announcement altering the outlook for the pound. Today’s BoE decision and communications are in line with our expectations and are consistent with our bullish GBP forecasts," MUFG adds.