Forex Flash: BoE on Hold, But Likely Another Split Vote – TD Securities

FXstreet.com (Barcelona) - According to Jacquie Douglas, Senior Global Strategist at TD Securities, “The Bank of England left its policy rate and asset purchase target on hold today, as had been nearly unanimously expected, and as we had forecast in our most recent UK Quarterly. But with no statement, we won’t get any further information until next week’s Inflation Report (which will be Governor King’s last) and the minutes from today’s meeting in two weeks.”

She went on to add, “ The IR will likely reveal only modest changes to the BoE’s growth and inflation forecasts, after the prior two editions already included pretty substantial changes to the BoE’s outlook. The minutes will likely reveal another split vote, as the last three months have seen three of nine MPC members vote for further QE. We could even see a fourth vote in favour of QE, resulting in a razor-thin 5-4 decision, as recent comments from Weale suggested that the easing of inflationary pressures could get him to reconsider his vote and elect for further stimulus instead. But for now we have no new information.”