The Bank of England held Bank Rate at 3.75% as expected; the vote was 6-3 with
three members preferring a 25bp hike. Governor Bailey said the pre-existing
disinflation trend that existed before the Middle East conflict remains in
place, adding: "This offers some initial evidence that inflation inertia may be
weaker than previously expected." GBP/USD 1.3381, below 1.3392 before the
decision.
