The Bank of England on Thursday, kept rates on hold in a 6-3 split, with three members voting for a 25 basis point cut, a more dovish outcome than markets had expected (a 7-2 vote).
- BOE leaves bank rate unchanged at 4.25%, as expected
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BOE’s Lombardelli: Services inflation is proving quite sticky
TD Securities strategists in response said in a note that the Bank of England’s latest policy decision is unlikely to significantly impact the pound.
- “There isn’t a lot for sterling to chew on besides the marginally dovish vote.”
However, TD notes that central banks are currently overshadowed by broader geopolitical and macroeconomic forces, especially amid heightened concerns the U.S. may be preparing to strike Iran.
- “That means the dollar is a tide that lifts or sinks all boats so not much to get excited here for sterling on the BOE.”
This article was written by Eamonn Sheridan at www.forexlive.com.
