As expected, the Bank Rate and the stock of purchased assets were unchanged at 0.50% and GBP375bn, respectively. The rate vote count was unchanged at 8-1.
There was not much news in the minutes. The lower oil price has lowered the inflation outlook further, growth seems to have slowed down a bit and risk appetite is poor. The weaker GBP pulls somewhat in the other direction.
The next meeting is due to take place only three weeks from now. At this meeting, we expect focus to be on the updated Inflation Report.
We think the Bank of England will increase the Bank Rate in Q2 16, probably in May, but recognise that it sounds less and less 'Fed light'.
We still target EUR/GBP in 0.73 in 3M and 0.71 in 6M.
To read the entire report Please click on the pdf File Below