Shows how much I know then, but I got the price action right at least!
- Weale and McCafferty switch vote to hold
- QE vote 9-0 as prev/exp
GBPUSD down to 1.5081 on the headline which will please us bears
The Governor invited the Committee to vote on the propositions that:
- Bank Rate should be maintained at 0.5%;
- The Bank of England should maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.
Regarding Bank Rate, the Committee voted unanimously in favour of the proposition.
Regarding the stock of purchased assets, the Committee voted unanimously in favour of the proposition.
- decision for hawks to change vote was finely balanced
- they now agree that rate rise would increase chances of prolonged low inflation
- MPC sees a “roughly even ” chance that CPI will fall below 0% at some point in H1 2015
- downward effect on CPI likely to be temporary if oil prices stabilise
- MPC alert to low inflation impact becoming entrenched
- growth remains solid in UK and US
- Eurozone risks have increased
- monetary policy could and would be adjusted atappropriate time for 2% inflation target to be hit
- sees medium-term upside pressure on CPI from faster increase in incomes
- sees early signs of wages pick-up, lower mortgage rates
Full MPC Minutes here
GBPUSD finding some support into 1.5075 and bouncing to 1.5105 as traders digest better jobs/wages data too
EURGBP took out the 0.7650-55 offers but baulked at taking on the next lot at 0.7685
