- Prior 5.00%
- Bank rate vote 8-0-1 vs 7-0-2 expected (only Dhingra dissented, wanting to cut by 25 bps)
- Need to be careful not to cut rates too fast or by too much
- Most MPC members think in the absence of material developments, a gradual approach to removing policy restraint would be warranted
- Labour market continued to loosen but that it remained tight by historical standards
- But data quality issues continued to be an area of concern i.e. LFS
- “Range of views” on inflation persistence among those who voted to keep rates unchanged
- Despite that, the current policy stance was judged to be appropriate
- Monetary policy will need to continue to remain restrictive for sufficiently long
- To monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting
- Full statement
This article was written by Justin Low at www.forexlive.com.
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