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BoE Holds, Does Not Give an Inch
Today, the BoE held its policy rate at 5.25%, as was widely expected by all economists and markets. After the fuller decision in early-November which included updated forecasts and a press conference, today’s affair was only a refreshed statement and the customary minutes that accompany it. The core guidance sentence in the statement, “monetary policy is likely to need to be restrictive for an extended period of time”, was left unchanged. Today’s decision does not change our view that the first BoE rate cut will come at the June 2024 meeting, for a total of 125bps by end-2024. Like at the November decision ... (full story)