🏦 BOE Sends Mixed Signals with Rate Cut The Bank of England delivered a rate cut on Thursday, as expected. However, it was the commentary and new forecasts that caught investors off guard. 📉 Markets initially responded with a dovish reaction, but with time to digest the details, traders are now rethinking. 📈 GBP is bouncing back from its lows, and UK yields are also rising slightly, though they remain down for the day. 🔄 The market’s uncertainty is driven by contradictory messages from the BOE: 📉 Growth forecast for this year was cut by 50%. 📈 At the same time, GDP projections for 2026 and 2027 were raised. 📊 Both dovish and hawkish MPC members voted together for a 50bp rate cut. 📈 Inflation is expected to rise to 3.7% this year, even though service prices are forecasted to moderate. 📢 The MPC acknowledged risks on both demand and supply. They stressed that rate reductions would be gradual and cautious. Despite the cuts, UK interest rates are still restrictive, and economic growth continues to weaken. 📌 In summary, the BOE’s decision has left markets with more questions than answers—dovish at first glance but with clear hawkish undertones. The next few months will be critical for traders to gain further clarity. 👀📉📈