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GBP/USD rebounds as Bank of England leaves rates on hold at 5.25%

The Bank of England has just done as was expected and maintained the current UK base rate at 5.25%. This was pretty much a forgone conclusion and as such it represents no surprise to the markets. As already noted here this morning, the Pound had been tracking lower ahead of this outcome, versus both the Dollar and the Euro. However, the vote split on this decision was a far less certain outcome and it has revealed a three-way vote split with some pushing for a hike and some pushing for a cut. The BOE has dropped the guidance on further tightening and they have issued some further growth forecast increases and indicating to the markets; that the current dovish bias is not warranted. The pound has lifted on this news, but it remains to be seen how this will ultimately be digested. The acid test on this could not come from the 12.30pm press conference. The GBP/USD is now trading higher versus the Dollar and the Euro. The GBP/USD is right now at 1.2660 

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