Bank of England monetary policy meeting 14 December 2017

  • Expected vote 9-0 unch. Prior 7-2 for a hike
  • Main rate 0.50% unch
  • Total QE 445bn

Comments;

  • Some evidence Q4 GDP may come in softer than expected, weakness seen in near-term assumptions
  • Too early to judge effect of November rate rise but notes public acceptance rates are on the rise
  • Further rate rises warranted over coming years if economy performs as forecast
  • MPC saw positives from both Autumn budget and completion of first phase of Brexit negotiations
  • Externally, growth remains strong among UK’s main trading partners
  • MPC notes higher than expected household consumption offset by a drag from trade
  • Inflation is close to its peak and will decline towards target in medium term

GBPUSD had a minor wobble to 1.3419 from 1.3445.

As I mentioned, there’s been a slight change in the inflation language, which is giving them some wriggle room. “Close to peak” is not will peak on XYZ date”. It’s minor but it’s weighing a tad on the pound.

Full statement;

Bank rate maintained at 0.50%

Our Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.50%. The committee also voted unanimously to maintain the stock of corporate bond purchases and UK government bond purchases.
Published on 14 December 2017

Ryan Littlestone

Psychedelic chartist extraordinaire. Have your shades ready.
Philosophy: “Don’t be a Dick for a tick”

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