Bank of England Rate Expectations Remain Far Too Aggressive
Despite last week’s dovish BoE rate hike, in which the Bank voted in an 8-1 split to hike 25bps. The Pound alongside rate expectations remain supported. However, while the lone dissenter who voted for the Bank Rate to be left unchanged grabbed market participants’ attention, there was also a notable change in the forward guidance.
February statement- Some further modest tightening in monetary policy “is likely” to be appropriate in the coming months
