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The meeting minutes of the MPC revealed that the voting pattern hasn’t changed: 8 voted against a change in policy while one voted for a hike. It was Ian McCafferty, as usual. The markets moved to look at the minutes, which saw the glass half empty.

The BOE sees the rise in wage growth as flattening and  overseas events causing worries. It also says that when rates rise, it will be gradual and probably not reach previous highs. This is a repeat of the previous wording.

GBP/USD  had moved higher before the release and retreated  immediately afterwards: from 1.52 to 1.5140 before stabilizing. All in all, the pound is lower on the day but we don’t see any earth  shattering movements.

The Bank of England was expected leave the interest rate unchanged at 0.50% and the QE program at 375 billion pounds. The big question was the meeting minutes. First and foremost,

GBP/USD traded in  a clear range between 1.5160 to 1.52 towards the event, holding on to the high ground it reached after the dollar squeeze.

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