European Daily: BoE Recap Content with Holding

The BoE MPC voted 7-2 to keep the Bank Rate at 3.75%, citing comfort with current levels despite potential upside inflation risks. Goldman Sachs maintains its outlook for the Bank Rate to remain unchanged for the remainder of 2026 before easing in 2027.

Key Takeaways

• 1.The Bank of England MPC voted 7-2 to hold the Bank Rate at 3.75%.
• 2.Goldman Sachs expects the MPC to remain on hold throughout 2026 before lowering the Bank Rate in 2027.
• 3.Market curve steepness is interpreted by Governor Bailey as being driven more by risk premia than expectations of future rate hikes.

Table of Contents

• European Daily: BoE Recap—Content with Holding
• BoE Recap—Content with Holding
• The Path Ahead

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