BoE kept Bank Rate unchanged at 0.10% by 7-2 vote today. Known hawks Dave Rasmden and Michael Saunders voted for a hike to 0.25%. The MPC also voted by 6-3 to continue with government bond purchase with GBP 875B. Catherine Mann, Dave Rasmden and Michael Saunders voted to cut bond purchases by GBP 20B.
In the forward guidance, BoE said if incoming data, particularly on the labor market, are inline withe central projections in the Monetary Policy Report, it will be “necessary over coming months to increase Bank Rate in order to return CPI inflation sustainably to the 2% target.”
