Release Explanation: It's a detailed record of the BOE MPC's most recent meeting, providing in-depth insights into the economic conditions that influenced their vote on where to set interest rates.
Trade Desk Thoughts: The BoE's minutes from the meeting held at the beginning of January shows that the committee had a split vote. Eight members voted for a 50-basis rate cut, while one, Mr. Blanchflower, proposed a 100 basis points rate cut.
Some members even suggested for a hold at the January meeting. The assessment behind this decision was that the bank should wait for the February inflation report, which would be the guideline for the future monetary policy. The on-going rate cuts together with the stronger than expected pound's depreciation might help the bank reach its inflation target, despite the previous forecasts. In addition, the minutes show that the bank should not be expected to further reduce its monetary policy, if the economic outlook does not change to the downside anymore, as the bank acted in anticipation.
However, the members of the Voting Committee agree on a 50 basis points rate cut, acting pre-emptive. Further, the Committee members have said that a smaller or a large rate cut than what the market already price in could further damage the confidence in the real economy or in the financial markets.
Forex Technical Reaction: The pound rose 80 pips since the report went public, however, the pair still trades below the Asian open price.