EUR/GBP, GBP/USD flows: Slight vote change but broad story looks similar
Sterling little changed after BoE; seems to leave broad story unchanged
Little in the way of kneejerk to the BoE decision. While the vote moves to 6-3 from 7-2 that was not a great surprise given Mann had been moving to more on the fence. The breakdown of the ceasefire and so prospect of lengthier impact tipped this vote over the edge.
The overall discussion largely still revolves around the idea of what risk management favours, hiking now to head off second round effects, or holding off for now given other financial tightening and with the growth outlook seen soft. On first glance most of the other discussions look broadly unchanged in terms of broad nature.
The BoE does still not expect inflation back below target until early 2028 though and that on market expectations, which have tightening priced in around the turn of the year. Market are unlikely to shift much based off today and instead focus more on how Iran and the resulting data plays out through to the autumn.