Trade Desk Thoughts - U.K. MPC Meeting Minutes

Actual 7-1-1, Expected 7-2 Hold, Previous 7-2 Hold

Release Explanation: The Bank of England (BOE) Monetary Policy Committee (MPC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier. The minutes expose the votes cast at the meeting and can give traders further insight into the central bank's stance on monetary policy

Trade Desk Thoughts: The minutes of the Bank of England meeting committee show the focus of the bank remains on inflation and anchoring the inflation expectations. There were conversations about the possibility for a rate cut, raised by Mr. David Blanchflower, but the members feared the bank would send the wrong signal to the market, putting growth in front of inflation. Mr. Tim Besley proposed a rate increase but the committee found this measure inappropriate since that move may deepen the economic slowdown.

Overall, the meeting minute's shows that inflation remains a big problem for the central bank, and the committee is not ready to abandon their inflation target in order to support the economy.

Forex Technical Reaction: The pound made a 30 pip move higher at the time of the release, but soon reversed and continued moving lower. The pair is trading just above TheLFB S1, falling nearly 90 pips since the Asian session started. Against the euro, the pound fell 30 pips and has broken above the high of the previous session.

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