The Bank of England meeting did not surprise the market and was not affected by this week’s stronger-than-anticipated services inflation data, says Pooja Kumra, Senior Europe and UK Rates Strategist at TDS.
BoE meeting comes with almost no surprises
“Today’s BoE meeting came with minimal surprises, with the MPC keeping the Bank rate unchanged by a vote of 7-2 unchanged, as Ramsden and Dhingra continue to favor a cut.”
“Markets appear relieved that this week’s stronger-than-anticipated services inflation data has not derailed the MPC’s rate cut cycle guidance. Indeed, the Committee also acknowledged that stronger-than-anticipated services inflation “what was anticipated was driven by unique salary factors.”
“The short end is now pricing in around 15bps in cuts for the August meeting and around 50bps in total for 2024. We think risks could be ‘finely’ balanced as there is still a lot of information that markets need to absorb before of the next meeting, including the July 4 election and the July 17 CPI data.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
