ICYMI: Bank of England jacked rates 75bp higher, biggest in >30 yrs, & were, errr, dovish

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ICYMI: Bank of England jacked rates 75bp higher, biggest in >30 yrs, & were, errr, dovish

<p>When the FOMC jammed its rate 75bp higher on Wednesday the market response was 'dovish'. Chair Powell scuttled that with his hawkish comments soon after.</p><p>On Thursday the Bank of England hiked the same, by 75bp. Then Bank of England Governor Bailey dropped dovish remarks at his presser. </p><p>Confused? Maybe its all part of a plan:</p><ul><li><a href="https://www.forexlive.com/news/the-great-central-banking-bluff-20221103/" target="_blank" data-article-link="true">The great central banking bluff</a></li></ul><p>In summary, the BoE overnight:</p><ul><li>raised its cash rate by 75bps, to 3%, as expected</li><li>the vote was 7-2 in favour of +75<ul><li>Dhingra dissented, wanting +50bp</li></ul><ul><li>Tenreyro was further away, wanting +25</li></ul></li><li>economic forecasts included a 3% contraction in GDP,  CPI inflation  but as high as 10.9% on the way</li></ul><p>Governor Bailey press conference watered down his previously hawkish message:</p><ul><li> We think the bank rate will have to go up less than what's currently priced in financial markets</li><li>but he did caveat this by saying risks to inflation were to the upside</li></ul><p> GBP fell:</p><p>The next Bank of England meeting is on Thursday 15 December. As I update pricing is circa:</p><ul><li>50% for 75bps</li><li>cash rate to top at around 4.75% in 2023</li></ul>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: ICYMI: Bank of England jacked rates 75bp higher, biggest in >30 yrs, & were, errr, dovish

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