BOE leaves bank rate unchanged at 5.00%, as expected

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 muchMost MPC members think in the absence of material developments, a gradual approach to removing policy restraint would be warranted”Range of views” on inflation persistence among those who voted to keep rates unchangedDespite that, the current policy stance was judged to be appropriateMonetary policy will need to continue to remain restrictive for sufficiently longTo monitor closely the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meetingFull statement

This article was written by Justin Low at www.forexlive.com.