As expected, the Bank of England raised Bank Rate by 50 bps to 3.50%. The BoE did not provide much for GBP to chew on, economists at TD Securities report.

Not much of a surprise from the BoE

“As broadly expected, the BoE hiked 50 bps to 3.50% and signalled that more hikes are likely. The vote was biased to the downside, with the two most dovish MPC members calling for no hike while hawk Mann voted for 75 bps.”

“Less forward guidance over policy hikes implies less marginal support for GBP.”

“On balance, we think GBP has run most of the course but prefer to see weakness emerge on the crosses (like vs EUR). There is some risk that this bleeds into the USD given holidays approaching as well, but we think the hurdle is high to see major USD weakness emerge.”