The Bank of England kept its policy unchanged via a unanimous 9-0 vote.

Key points:

Dropped previous indications for further action by year end

Interest rates can go in either direction (implying they could also hike)

Impact of GBP on inflation to be temporary

Offsetting fully with higher rates would be too costly GBP/USD rose 30 pips on the news and continued higher in the following minutes.

Focus now turns to Governor Carney’s press conference in 25 minutes.

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