A mixed bag from the BOE but the market sees it more dovish than hawkish
The battle on inflation is on. The BOE see inflation peaking around the end of 2017 and thus well within their forecasts and expectations. On one hand that rules out a hike.
On the other hand we get this;
"On the whole, the Committee judges that, if the economy follows a path broadly consistent with the May central projection, then monetary policy could need to be tightened by a somewhat greater extent over the forecast period than the very gently rising path implied by the market yield curve underlying the May projections. "
Maybe I'm making mountains out of molehills as the PA hasn't done anything dramatic bar a 60 pip fall, and funnily enough was largely caught by the trend line I highlighted earlier.
Expect a bit of to and fro from here until we sit down with Carney in a bit.
Overall, my quick take is that there's just been some minor goal post moving rather than anything new happening but I'll go through it all now.
