BoE holds its fire for now - ANZ

Research Team at ANZ, notes that the BoE left interest rates unchanged, voting 9-0 to keep rates on hold – as expected.

Key Quotes

“The BoE's assessment of Brexit risks in the short term are that the pound could fall sharply, affect the economy negatively, and make the inflation outlook more uncertain. It said it has the stability tools to protect banks.

Survation released its latest poll, which showed 48% in support of Remain, 52% in favour of leave.

May retail sales were very strong, rising 0.9% m/m and the April m/m number was revised up to +1.9% vs +1.3%. The UK consumer is spending. Textile, clothing, and footwear rose 4.3%, which might hint at some weather effect, but other sectors showed healthy growth too. This consumer environment does not warrant rate cuts, but it’s all about Brexit.”