Bank of England raised its benchmark interest rate by 25 bps to 4.25 % as widely expected. Inflation is still likely to fall sharply over the rest of the year and to a lower rate than anticipated in February, but policymakers warned that if there were to be evidence of more persistent pressures, then further tightening would be required. On the recent banking crisis, the central bank noted that the UK banking system maintains robust capital and strong liquidity positions, and remains resilient. Policymakers will also continue to monitor closely any effects on the credit conditions faced by households and businesses, and hence the impact on the macroeconomic and inflation outlook.
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Create account Try a demo Download mobile app Download mobile appBoE official rate. Source: Bloomberg via ZeroHedge
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Q2 CPI likely to be lower than forecast in February, due to longer energy price cap and lower wholesale prices.
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Fiscal support in the March budget will raise GDP by roughly 0.3% over the following years.
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BoE MPC Vote Hike Actual 7 (Forecast 7, Previous 7
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BoE MPC Vote Cut Actual 0 (Forecast 0, Previous 0)
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BoE MPC Vote Unchanged Actual 2 (Forecast 2, Previous 2)
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BoE Decision Maker Panel: Businesses see year-ahead inflation of 5.6% in 3 months to February vs 6.2% in 3 months to November.
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BoE: Staff anticipate no increase in unemployment and 0.2% Q2 employment growth (February's forecast: -0.4%).
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Traders add to BoE rate hike bets, pricing a 4.62% peak.
GBPUSD spiked following today’s BoE decision and approaches upper limit of the local triangle pattern. Source: xStation5
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