BOE MPC Minutes: Some withdrawal of stimulus likely appropriate in 'coming months'

Author: Mike Paterson | Category: Central Banks

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.

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