Forecasts have been lowered and the inflation target has been extended to 3 years. Pound strength dampens inflation forecasts for after H2 2016. GBP/USD falls over 100 pips to 1.5265.
Support awaits at 1.52, followed by 1.5150. Resistance is at 1.53 and 1.5360.
CPI expected to reach 2.1% only in 2017. For 2016, it’s under 1%. The outlook for global growth is weaker than in August. The path for rates is now flatter than it used to be.
No change was expected in the voting pattern, but we have a lot more coming: the content of the minutes and the Quarterly Inflation Report. — more coming — live coverage is below
GBP/USD was trading in a stable manner around 1.5380, within the 1.5360 to 1.55 range. EUR/GBP, GBP/JPY and other pound crosses were all pound positive.
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