Pound Plunges After BOE Votes 6-2 To Keep Rates Record Low, Cuts Growth Forecast

MPC holds #BankRate at 0.25%, maintains government bond purchases at 435bn and corporate bond purchases at 10bn. pic.twitter.com/ccUHh8b2IG
— Bank of England (@bankofengland) August 3, 2017

The whispers about a potential rate hike by the recently hawkish BOE ended up being wrong, when moments ago the Bank of England announced that in a 6-2 decision it kept rates unchanged at 0.25%, largely as expected. Saunders and McCafferty dissented in favor of an immediate interest-rate increase, with Haldane refusing to join the dissenters.
In separate unanimous decisions, the central bank also kept its bond purchase programs unchanged at GBP10BN and GBP435BN for corporate and government bonds respectively.
The pound tumbled on the news…

This post was published at Zero Hedge on Aug 3, 2017.