The Bank of England left its monetary policy unchanged at today’s meeting. According to the minutes, 8 members of Monetary Policy Committee members (MPC) voted to keep the benchmark rate at 0.5%, while only 1 member – McCafferty – proposed a rate hike. Some traders expected that other policymakers may join McCafferty in voting for higher rates. The decision to maintain the stock of purchased assets financed by the issuance of central bank reserves at 375 billion pounds was unanimous.
According to the central bank’s quarterly inflation report, inflation will stay below 1% until the second half of the next year. The Bank of England notes that domestic momentum remain resilient, but that the global growth outlook has deteriorated since August.
GBP/USD slid below 1.5300 on the news.