UK developments: BoE on hold for time being - Scotiabank

Analysts at Scotiabank explained the developments from the UK today.

Key Quotes:

"Retail sales fell 1.2% in May, much weaker than expected, pressuring the GBP through London trade but weakness reversed on the BoE policy decision (bottom chart); while policy makers left rates and QE settings unchanged, as expected."

"Three of the eight MPC members voted to raise interest rates (Forbes, who will leave the MPC shortly, represented the only dissent in recent voting)."

"Signs that policy makers are perhaps getting uncomfortable with rising inflation may support the GBP near-term but we doubt there chances of a tightening are realistic at this point."