The Bank of England not only upgraded its economic projections but also decided to taper their QE programme from £4.4bn to £3.4bn until August. However, while this would be seen as a hawkish development, BoE members stressed how their QE programme differed from the likes of the Bank of Canada and the Federal Reserve. This meant the QE announcement was merely operational as opposed to the start of a normalisation cycle.
Our reaction on the policy statement, meeting minutes, Monetary Policy Report, and press conference can be read below:
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