Bank of England (BoE) left the Bank Rate unchanged at 5.25% as widely expected, but delivering a slight dovish twist, Danske Bank’s Analyst Kirstine Kundby-Nielsen notes.

BoE delivers a dovish twist, hinting at August cut

“At today's monetary policy meeting the BoE left the Bank Rate unchanged at 5.25% as widely expected.”

“As we expected, the BoE retained much of its previous guidance but delivered a slight dovish twist, laying the groundwork for an August cut.”

“Following the release of the statement, EUR/GBP moved higher on the dovish twist from the statement. By extension and combined with the political uncertainty in France, this also acts as a downside risk to our EUR/GBP forecast of 0.88 in 6-12 months.”