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<ul><li style="" class="text-align-justify"><a href="https://www.forexlive.com/centralbank/boe-raises-bank-rate-by-75-bps-to-300-as-expected-20221103/" target="_blank" rel="follow">Prior</a> 3.00%</li><li style="" class="text-align-justify">Bank rate vote 7-2 vs 9-0 expected (Tenreyro, Dhingra voted to keep rates unchanged at 3%, Mann voted to raise rates by 75 bps instead)</li><li style="" class="text-align-justify">Further increases in bank rate may be required</li><li style="" class="text-align-justify">Q4 GDP seen at -0.1% q/q (previously -0.3% in November)</li><li style="" class="text-align-justify">Labour market remains tight</li><li style="" class="text-align-justify">Inflation expected to fall gradually in Q1 2023</li><li style="" class="text-align-justify">But there has been evidence that could indicate greater persistence of <a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_2" class="terms__main-term">inflation</a></li><li style="" class="text-align-justify">That justifies a further forceful monetary policy response</li><li style="" class="text-align-justify">BOE will consider and decide the appropriate level of bank rate at each meeting</li><li style="" class="text-align-justify"><a href="https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2022/december-2022" target="_blank" rel="nofollow">Full statement</a></li></ul><p style="" class="text-align-justify">The split in votes is the most eye-catching detail at first glance and the pound has taken a bit of a knock on that. And when you put that together with some changes in the language on forward guidance, that makes for a more dovish rate hike this time around by the BOE.</p><p style="" class="text-align-justify">In terms of the dissent, Tenreyro and Dhingra argued that 3% rates are "more than sufficient" to bring inflation back towards the 2% target, in the view that inflation has peaked - as according to the latest projections by the central bank.</p><p style="" class="text-align-justify">As for the language, the BOE omitted the wording that "policy is not on a pre-set path" and the part on any changes to the "scale, pace and timing" to the bank rate will depend on the outlook. In reading that, I would say it just means that they are reaching a point where a slower pace of rate hikes will be needed and a top is coming in soon.</p>

                This article was written by Justin Low at www.forexlive.com.