BOE Holds Rates, Citing 'Encouraging' Fall in Oil Price

The Bank of England held interest rates at 3.75% while citing the recent fall in oil prices as "encouraging." However, two policymakers voted for an immediate 25 bps hike, underscoring lingering inflation concerns and a still-hawkish policy split. The decision is likely to have broad market implications for UK rates and sterling.

Analysis

The Bank of England held interest rates at 3.75% while citing the recent fall in oil prices as "encouraging." However, two policymakers voted for an immediate 25 bps hike, underscoring lingering inflation concerns and a still-hawkish policy split. The decision is likely to have broad market implications for UK rates and sterling.