BOE leaves bank rate unchanged at 4.00% in September monetary policy decision

Prior 4.00%Bank rate vote [cut-unchanged-hike] 2-7-0 vs 2-7-0 expected (Dhingra, Taylor voted to cut by 25 bps)Underlying disinflation has generally continued, although with greater progress in easing wage pressures than pricesPay growth remains elevated, but has fallen and is expected to slow significantly over the rest of the yearUpside risks around medium-term inflationary pressures remain prominentDownside domestic and geopolitical risks around economic activity remainA gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriateThe restrictiveness of monetary policy has fallen as the bank rate has been reducedMonetary policy is not on a pre-set pathThe timing and pace of future reductions in the restrictiveness of policy will depend on the extent to which underlying disinflationary pressures continue to easeFull statementPretty much everything is as expected with the bank rate vote also reflecting what markets were thinking coming into the decision. Dhingra and Taylor remain the two more dovish members, advocating for a 25 bps rate cut. However, there was no drama like we saw in August with regards to the decision today.As for the statement language, the key parts from August are all retained as the central bank reaffirms a more gradual and careful approach in pursuing further rate cuts. So, there’s not really anything new for traders to act upon here.
This article was written by Justin Low at investinglive.com.

Source: investinglive.com (Read Full Article)