GBPUSD & EURGBP post BoEBoE Vote split comes in at 6 - 3
BoE keeps rates and asset purchases unchanged at 0.50% and 435bln respectively.
- Vote was 6-3 in favour of unchanged Bank Rate, unanimous for QE at 435B/APF at 10B
- Haldane, McCafferty and Saunders dissented, voting instead for a June hike
- Majority on MPC still reassured Q1 softness was largely temporary, but preferred to wait for further data on economy
- Dissenters saw greater likelihood erratic Q1 growth would rebound, saw upside risk to wage inflation
- MPC will not reduce stock of QE until Bank Rate reaches 1.5% (prev 2%)
- Reduction in QE stock will be at a gradual and predictable pace; over number of years
- Ongoing tightening of MonPol remains appropriate over forecast horizon
- UK economy to develop in line with May QIR forecast
- Global data since May QIR was mixed, financial conditions had tightened
