BoE Interest Rate Decision for May:
- Actual: 4.25%’ forecast 4.25%; previous 4.50%;
BoE MPC vote hike for May:
- Actual: 0; forecast 0; previous 0;
BoE MPC vote unchanged for May:
- Actual: 2; forecast 0; previous 8;
BoE MPC vote cut for May:
- Actual: 7; forecast 9; previous 1;
The ratio of votes to cut to maintain was 7:2, which is not in line with expectations, indicating a unanimous decision. The decision was postponed for 2 minutes due to the anniversary of Victory in Europe Day.
- Market rates imply less BoE loosening than in February, showing bank rate at 3.7% in Q4 2025, 3.6% in Q4 2026, 3.6% in Q4 2027 (Feb: 4.2% in Q4 2025, 4.1% in Q4 2026, 4% in Q4 2027)
- BoE expects inflation to peak at 3.5% in Q3 on a quarterly basis, previous forecast 3.75%
- BoE forecasts GDP growth in 2025 +1.0% (Feb forecast: +0.75%), 2026 +1.25% (Feb: +1.5%), 2027 +1.5% (Feb: +4.5%) based on market rates.
The lack of unanimity strengthens the British pound, as it may mean that there will be no consensus for another cut next month. GBPUSD returns above 1.3300.
The GBPUSD pair ticks higher after the BoE decision because of the surprise in the ratio of votes between holding and cutting rates. Source: xStation
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
