The Bank of England raised rates by 0.25% to 0.50% as widely expected with a 7:2 vote, a bigger majority than predicted. However, the BOE foresees only two hikes over the horizon of three years. This is extremely gradual. They also discuss the risks to the outlook coming from Brexit. In our preview discussed buying the rumor and selling the fact. And this is happening.
GBP/USD dropped from 1.3215 to 1.31 before bouncing to 1.3140 and then extended its drops as Carney spoke. The low is 1.3084 and the pair ends the press conference at 1.3110.Â
Carney downplayed the tightening impact of the move, repeated the very gradual and accommodative stance and stressed the uncertainties about Brexit.
You see the live blogging of the event as it happened below:
