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Rabobank analysts point out that as per expectations, the Bank of England MPC kept rates unchanged at 0.75% and the vote was unanimous.

Key Quotes

“The forward guidance was left untouched as well. The MPC still judges that a tightening of monetary policy at a gradual pace and to a limited extent would be appropriate, if the economy develops in line with the projections as set out in February.”

“These projections are based on a smooth transition towards a new trading relationship with the European Union. Given the huge uncertainties surrounding both the nature and the timing of Brexit, these need to be updated once clarity emerges.”

“Significant parts of the minutes were devoted to Brexit and its effects on business investment.”

“The implied probability of a rate hike before the end of the year has dropped even further, but this is primarily related to yesterday’s FOMC decision.”

“The market is rightly questioning whether the BoE dares to go against the Fed. We expect the MPC to sit tight for a while and forecast no rate hikes for the remainder of this year.”