UK BOE Bank Rate (Sep) 0.25% vs. Exp. 0.25% (Prev. 0.25%)
Reaction details (12:09)
- Market reaction was choppy as the 7-2 vote split initially disappointed those looking for a slightly more hawkish tinge to the BoE's communications. Although the statement that "A majority of the MPC judge that, if the economy continues to follow a path consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflation pressure then, some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to to return inflation sustainability to target (key addition)" pushed markets the otherway, although the bank posited that any increases in the bank rate are expected to be at a gradual pace and to a limited extent.
- Gilts initially traded up to 126.70 from 126.20 but then fell to session lows trading around 125.70.
- GBPUSD initially moved lower on the vote split trading around 1.3210 before it rebounded to clear 1.33, and last trades around 1.3285.
14 Sep 2017 - 12:00- Fixed IncomeImportant- Source: Bank of England
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