While BoE MPC voted 7 – 1 to keep rate unchanged at 0.25%
and accompanying meeting minutes was a touch hawkish – UK may need
tighter policy than yield curve implies, the Quarterly Inflation Report
contained a dovish tone – inflation now expected to park in 4Q2017 at
2.8%. This is below the 1 – 3% range that BoE initially expected. Carney
also said that the recent gain in the GBP is a reflection of market
expectation for a smoother Brexit post-elections but the BoE has not
modelled a ...