06 August, AtoZForex.com, Vilnius – SUPER THURSDAY is here! The BoE will overhaul its communications and simultaneously release the MPC decision, the minutes of the same meeting and August Inflation Report.
LIVE event updates:
MPC Official Bank Rate Votes
- Official Bank Rates left unchanged at 0.50%
- 1-8 vs. 2-7 expectation
- McCafferty votes for a hike and 25bp rate rise
Details from the minutes
- Some MPC found upside risks to inflation outlook
- Was a range of views on timing of the first rate hike
- Sees risk that GBP could have persistent CPI impact
- risks to global growth are moderately to a downside reflecting the Eurozone
- medium-term inflation expectations remain well balanced
- GBP appreciation poses risks to push down inflation in near-term
Fundamental Data
- based on market interest rates BoE forecasts 2% CPI in two-years time
- 2015 GDP outlook +2.8% vs +2.5% prev, 2016 unchanged at +2.6%
- wage growth in Q4 2015 +3.0% against +2.5%, Q4 2016 +3.75% against +4.0%
In the Market
One vote for hikes has disappointed the financial market and first impressions sound dovish on the talk on inflation. GBPUSD drops from 1.5620 to 1.5490, EURGBP rises from 0.6967 to 0.7038.