Bank of England Votes 7-2 to Hold Rates

The Bank of England added another vote in the ‘cut’ camp as Dave Ramsden joined Swati Dhingra in calling for a rate cut on Thursday. Before the media blackout period, Ramsden communicated optimism around inflation hitting the 2% target and remaining there for an extended period. His comments contrasted with the February staff forecasts which saw inflation plummeting to the 2% target but then rising above for an extended period.

The medium-term inflation projection (i.e. two years ahead) came in under the 2% mark at 1.9% to provide even greater confidence that the Bank is making progress in the battle against inflation.

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Cross-Market Reaction (5-Minute Charts)

Cable was seen lower in the moments following the announcement with commentary from BoE Governor, Andrew Bailey due at 12:30 UK time. EUR/GBP also witnessed a bid while the FTSE was only moderately improved on what has been an impressive move higher in recent trading days.