FXStreet — Even if some market participants have speculated that a second member of the MPC at the may meeting, could vote for a rate hike, it was no real Surprise, only Kristin Forbes voted against the unchanged policy rates, said Peter Dixon, Commerzbank expert.
Finally, the UK is in the middle of the election campaign, and in this environment, two dissenters would have sent a Signal to the market, which did not want to give the BoE. The decision underlying the growth forecasts were compared with February, Essentially unchanged, the expected inflation profile, there were slight shifts, with a slightly higher Inflation rate for 2017 (2.7% compared to 2.4% in February) and slightly lower next year (to 2.6% instead of 2.8%).
All in all, the BoE estimates that the economic Outlook is remarkably confident. A year ago, you had been however with around 0.5 percentage points higher growth forecast is still more optimistic. The current forecast profile match before the Referendum, submitted to analysis, which assumed a weaker growth dynamic in the event of a vote for the Brexit.
However, the current BoE projections are based on the assumption of the successful completion of Brexit negotiations. A chaotic Brexit would lead to a stronger deceleration.
** FXStreet News Editorial, FXStreet**