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IPFS News Link • Central Banks/Banking

Pound Tumbles After BOE Hikes 50bps In 7-2 Vote, Signals Pause At Lower Rate Of 4%

• https://www.zerohedge.com by Tyler Durden

... in a 7-2 vote (the two doves on the committee Swati Dhingra and Silvana Tenreyro voted for no hike) which was a two-way split and not a repeat of December's bizarro three-way.

Looking at the statement, the Committee continued to judge that the risks to inflation are skewed "significantly to the upside"

At the same time the committee dropped language in its statement saying it could act "forcefully" in future, adding that further rate rises would only be needed if there were new signs that inflation would stay too high for too long, i.e., this was struck down: "the Committee continues to judge that if the outlook suggests more persistent inflationary pressures, it will respond forcefully, as necessary."

The BOE also said that If there "were to be evidence of more persistent pressures, then further tightening in monetary policy would be required" vs the previous comment that a "majority" of the Committee judges that further increases in Bank Rate may be required for a sustainable return of inflation to target.