Bank of England October 2017 MPC montary policy announcement 02 November 2017

  • Prior vote: 7/2 to keep rates unchanged at 0.25%
  • Growth Forecast: Stronger near-term / weaker further out
  • Inflation Forecast: Higher near-term / back toward 2% further out
  • Brexit: Focused on smooth transition


  • 7-2 to raise rates 25bps to 0.50%
  • Cunliffe and Ramsden voted to keep rates on hold
  • 9-0 for unchanged QE at GBP435B; Corporate bond-buys GBP10B
  • Two more hikes seen over forecast horizon, to bring inflation back to target
  • MPC see inflation peaking in October 2017 at just over 3%
  • Growth seen averaging 0.4% per quarter over the forecast horizon
  • Outlook for inflation and activity broadly similar to August
  • Business investment continues to grow but hurt by Brexit uncertainty in real terms
  • Remains considerable risks to the outlook, due to Brexit developments
  • Credit conditions facing households and businesses have eased further
  • Overall, little less monetary stimulus seen now compared to August

GBPUSD has been smashed down to 1.3096.

Ryan Littlestone

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