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BoE: Rate Hold with Emphasis on Long Wait Before Cuts
Today’s Bank of England decision was as uneventful as they get for markets. The bank rate was left unchanged at 5.25% with a 6–3 hold-hike vote split, as was widely expected. In its updated MPR projections, the BoE lowered its GDP growth forecasts and lifted its CPI forecasts across the outlook horizon, with no material surprises. Key guidance and economic assessment sentences only saw slight adjustments, some in a more hawkish direction, some in a more dovish direction. The decision has no significant impact on our outlook for the BoE. We see rate cuts starting in Q2 (totaling 50bps) towards an end-24 bank rate ... (full story)