BoE Punts to August - TDS

Research Team at TDS, notes that against market expectations, the Bank of England voted 8 to 1 to leave Bank Rate on hold today at 0.50%.

Key Quotes

“Little guidance to August’s decision was offered, other than saying that most (but notably, not all) members felt that easing would be warranted.

The MPC remained vague on its easing options, referring to “policy packages” rather than specific policies.

We continue to treat the July & August MPC meetings as a package, and expect a 25bps rate cut at the August meeting, alongside other unconventional policies, such as QE, credit easing, or expansion of the FLS.”