BoE : The central bank confirms a rate hike as widely expected, the GBP sells the new and back on the Forex

The BoE held its monetary policy meeting this Thursday, and noted rates as anticipated.

In fact, the BoE has raised its key rate 25 basis points to 0.5% as widely expected by the markets.

The decision was taken with a vote of 7-2.

The Minutes and the quarterly inflation report, maintain a bias slightly dovish.

The growth forecasts have been raised in the short term, but reduced in the longer term. Inflation should continue to rise in the short term before moving back towards 2 percent, according to the BoE.

The BoE believes rates up again two times on the predictable future, in order to bring inflation back to the target. The MPC believes that inflation should go up in October 2017, just above the 3%.

Growth should hover around 0.4% in the coming quarters.

The BoE has, in particular, removed a line that said that more rate increases than the markets had expected might be needed, and added a line saying that future rate hikes would be limited and gradual.

This is the first rate increase in 10 years, but it seems that this will also be the last for a while. We could have a further increase in 2018 and another in 2019.

The GBP sells the new and back on the Forex with such a tone slightly dovish on inflation, and in the Minutes.

GBP/USD is testing the first support noticeable towards the 1.3100.

Mark Carney will hold a press conference at 13: 30.

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