- Prior 3.75%
- Bank rate vote 5-4 vs 7-2 expected
- Breeden, Dhingra, Ramsden, Taylor voted for a 25 bps rate cut
- “All is going well, there should be scope for some further reduction in the bank rate this year”
- But this does not mean that there is expectation to cut the bank rate at any particular meeting
- On the basis of the current evidence, the bank rate is likely to be reduced further
- Judgements around further policy easing will become a closer call
- The extent and timing of further easing in monetary policy will depend on the evolution of the outlook for inflation
- Full statement
Right off the bat, there are a few changes to the statement to take note of. In December, the BOE mentioned that:
“On the basis of the current evidence, the bank rate is likely to continue on a gradual downward path.”
This time around, they tweaked that ever so slightly to say that:
“On the basis of the current evidence, the bank rate is likely to be reduced further.”
More to follow..
This article was written by Justin Low at investinglive.com.