Monetary Policy & Inflation | Rates | UK
BoE Monitor: Turning the Wage on Hawkishness
- By Henry Occleston
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- 6 min read
Summary
- The BoE hike by 25bp to 5.25% as we expected. And while we had seen a big risk of a 50bp hike, there were two votes for such, the majority of the MPC are clearly more reactive to near-term inflation misses/beats.
- As expected, the content of the MPR forecasts was more dovish. There is continued room for more dovish surprises ahead.
Summary
- The BoE hike by 25bp to 5.25% as we expected. And while we had seen a big risk of a 50bp hike, there were two votes for such, the majority of the MPC are clearly more reactive to near-term inflation misses/beats.
- As expected, the content of the MPR forecasts was more dovish. There is continued room for more dovish surprises ahead.
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