British Pound: BoE on hold sparks Sterling softness – Danske Bank
Danske Bank’s Danske Research Team highlights that the Bank of England left Bank Rate at 3.75% with a 6-3 vote, disappointing hawkish market expectations and triggering GBP weakness and lower rates.
The Bank of England's decision to keep the Bank Rate at 3.75% left the British Pound weak, as hawkish market expectations were not met. The Monetary Policy Committee (MPC) voted 6-3 in favor of a rate hike, despite acknowledging higher upside risks to inflation. Danske Bank's research team forecasted no change in rates this year and a potential June rate cut, with the risk of a Q4 hike increasing.
Quantitative tightening plans aligned with expectations, with the remaining quantitative tightening stock set to be unwound at an annual average pace of £46bn by the end of 2034. The MPC recognized the increased uncertainty surrounding inflation risks since July.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
