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Aug 02 - 11:00 AM
GBP: BoE Hiked As Expected But The Unanimous Vote Surprised - SEB
First appeared on eFXplus on Aug 02 - 08:57 AM

SEB Research discusses its reaction to today's BoE August policy meeting. 

"BOE hiked by 25 bps to 0.75% as widely expected. However, the unanimous vote (9-0 vs 3-6 in June) was less expected adding a hawkish tone to the decision. Also BOE’s wording in the end of the statement has a hawkish tone as it judges that if the economy develops in line with their projections "an ongoing tightening of monetary policy over the forecast period would be appropriate."

However, mitigating the hawkishness was BOEs first projection of the neutral rate, comments made by Governor Carney during the press conference as well as the end of the released statement saying that “any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent."

We still don't expect another rate hike from the BoE until August 2019 as growth remains weak and we believe inflation already in on its way down," SEB argues. 

Source:
SEB Research/Market Commentary

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