GBPUSD is troubling 1.2600 following the BOE MPC meeting
If the market was looking for anything remotely hawkish, it’s sorely disappointed. The BOE are happy to let inflation run hot for longer than usual and repeated that they can respond in either direction. Their main worry is that higher import costs and moderating wages will mean weaker household income growth. As I mentioned in my preview, raising rates just on inflation when they’re not ready to do so on the state of economy as it is, would act as a double whammy to households.
Pound flip flops after BOE announcement as MPC continue to overlook inflation
