As expected, no change in Bank of England rates or QE target - but MPC has decided to slow the rate of its asset purchases so they stretch out to the end of the year
bankofengland.co.uk/-/media/boe/fi…
bankofengland.co.uk/-/media/boe/fi…
MPC now sees UK economy running 0.5% of GDP above capacity by Q2 2022 (up from 0.25% previously) - a hawkish signal
Sterling up in wake of MPC forecast - suggests a hawkish interpretation
This (pink line) shows the improved GDP growth forecast since February's projection from the Bank
Biggest forecasting shift since February is the MPC's unemployment projection
Previously the Bank projected a 7.7% jobless rate in Q2 2021 - now it expects a peak of just 5.2% this year
Previously the Bank projected a 7.7% jobless rate in Q2 2021 - now it expects a peak of just 5.2% this year
...striking difference between the market implied path of interest rates now relative to February's MPC report - traders seem to have now buried expectations of negative interest rates
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