BOE MPC Minutes: Some withdrawal of stimulus likely appropriate in 'coming months'
BOE Minutes published along with decision 14 Sept
- majority of MPC think a lessening of 'trade-off' evident if economy continues on current path
- all MPC think rate hikes will be faster than current market pricing, if economy follows August QIR projections
- early Q3 data stronger than committee anticipated in August Report
- Recent developments reinforce belief slack to disappear more rapidly than expected
- Underlying pay growth has showing signs of recovery, albeit still modest
- there remains considerable risk to the economic outlook
- all on MPC agree rise in Bank rate should be 'gradual' and 'limited'
- overall, UK weighted world GDP growth in Q2 slightly stronger than expected by MPC
- MPC notes spot oil prices 12% higher than in August Report
So there we have it, as per my preview. Knee-jerk on the decision and then total reversal and more on the detail.
Full Minutes here
GBPUSD now posting highs of 1.3308 from 1.3151 lows post-MPC. EURGBP 0.8942 from 0.9050 having taken out the strong support at 0.8980 and 0.8950.
I hope you've managed to enter/exit with/at your chosen levels.