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


  • 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

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