FTSE 100 lifts in Dovish reaction to unchanged rates

Following on from the previous update, noting the unchanged interest rate decision, the FTSE 100 has lifted to a fresh session high. This is a pretty dovish reaction to the announcement and seems to rest with the lack of clarity on forward guidance. This sees the market making an assumption that a cut is not likely until November and that does rather fly in the face of what is unfolding in the policy outlook. Confused? Well, you are not alone. Perhaps the point here; is that a cut is coming next and not a further hike. That is despite the fact that Bailey has not said a rate cut is coming and the market has chosen to see this as being driven by a wish not to want to have any political influence ahead of the election.The FTSE 100 is currently trading at 8,235