BoE's dovish message, markets not pricing much tightening

While it is clear from the BoE's message they are not close to pulling the trigger, the current market pricing implies a first 25bp hike in prices only towards the end of 2016. Odds are the BoE will move much earlier than this.

"Still, as the MPC reminded, all members agreed that the likely persistence of the headwinds restraining economic growth following the financial crisis means that, when Bank Rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles", says Nordea Bank.

Market pricing of BoE actions going forward moderated further and the GBP felt some pressure. BoE's message was thus interpreted as dovish.