November 29, 2022

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BOE bank rate unchanged 0.10%

1 min read

BOE announces latest monetary policy decision 

  • Bank rate votes  0-0-9 expected
  • Gilts purchases £875 billion
  • Corporate bond purchases £20 billion
  • Total asset program £895billion (unchanged)

A very holding position from the headline figures with only Haldane looking at tapering bond purchases. This is his last meeting too, so he is a hawk soon to fly the nest. GBP falling on the lack of hawkish take. Sonia futures had seen optimism after the Fed’s hawkish dot plot shift, but the BoE is cautious. GBP retracing that optimism now and GBPUSD down around 70 points.

GBPUSD 

 

  • Uncertainty about how many people with resume search for a job at the end of teh furlough scheme
  • inflation rise expected to transitory
  • One dissenter on the gilt vote – that was Haldane
  • GDP in 2021 for Q2 revised up by about 1.5%
  • Did not want to undermine the recovery by premature tightening 
  • Asset purchase programme to be kept under review

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