Last BoE meeting hasn’t become a game changer for GBP – Danske Bank

EUR/GBP ended the day lower on the back of a hawkish vote split at yesterday’s BoE meeting, where the BoE kept the Bank Rate unchanged at 4.50% in line with expectations, Danske Bank’s FX analyst Jens Nærvig Pedersen reports. 

EUR/GBP set to move lower in the near term  

“The central bank maintained its previous guidance signalling a ‘gradual and careful’ approach to easing monetary policy. Although the vote split was slightly to the hawkish side, we do not see this as a broad shift in sentiment within the MPC. We expect the next 25bp cut in May with the Bank Rate ending the year at 3.75%.” 
“For GBP FX we do not see yesterday’s meeting as a game changer and forecast EUR/GBP to move lower.”