 British pound experienced some volatility following BoE's rate decision, which revealed a dovish tilt in both the voting pattern and the language used. Sterling dipped initially, but then made a swift recovery, surviving as Governor Andrew Bailey dovish remarks in his follow-up press conference. Bailey stressed it's not time to cut interest yet. But for June, he's open to the idea, depending on upcoming economic data. He took a non-committal stance and described a June cut as "neither ruled out nor a fait accompli." However, with inflation projected to dip below target to 1.6% in three years, Bailey indicated the necessity for future rate cuts to make monetary policy less restrictive over the forecast period. |
