Danske Bank of GBP/USD
Against our expectation, the Bank of England (BoE) maintained the Bank Rate at 0.50% . Given BoE Governor Mark Carney’s very dovish speech two weeks ago in which he said that ‘some monetary policy easing will likely be required over the summer’ due to a deterioration in the economic outlook, we expected a 25bp rate cut today in line with market pricing. One member of the Monetary Policy Committee, Gertjan Vlieghe, voted for an immediate cut. As widely expected, the stock of purchased assets was unchanged at GBP375bn (vote count 9-0).
