The BOE was was guns-a-blazing at last month's MPC with four votes for a 50 bps hike but the hawks turned hesitant. Not one voted for 50 bps this time and the lone dissenter was Cunliffe for keeping rates unchanged. More details are here.
The market had been pricing a 40% chance of a 50 bps hike but evidently it wasn't even up for debate and the statement said risks are on both sides.
Cable cratered to 1.3097 at the low from 1.3200 before the announcement. It's since bounced 20 pips.
The risks are on the USD side in the next few minutes with housing starts, the Philly Fed and initial jobless claims all due.
