The Bank of England still has cold feet on rate cuts, reluctant to commit

The Bank of England took a look at falling inflation but say ‘Nope’ to rate cuts this time around, as expected.

ICYMI:

• ForexLive European FX news wrap: BOE keeps bank rate on hold
• Why the dovish BoE didn’t trigger a more sustained drop in the GBPUSD pair?
• A quick summary of the BOE press conference

The JP Morgan response is blunt, saying the Bank is reluctant to commit to a specific monetary policy path ahead. JPM say the Bank has shifted dovish, citing downward revisions to BoE inflation forecasts. And add that the implied path of rates by market pricing seems to be accurate.

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June is in the market’s crosshair for a rate cut but August instead is a possibility.

Bank of England Governor Bailey

This article was written by Eamonn Sheridan at www.forexlive.com.