BOE: Instant Answers August Meet: Hikes 50 Bps

1)      Was the Bank Rate raised, and if so by how much? Yes, by 50bp to1.75%.

2)      Number of members voting for a 25bp hike? 1 - Tenreyro

3)      Number of members voting for a 50bp hike? 8 

4)      Number of members voting for a decision other than 25/50bp hike (and if so what?)? (NB: On questions 2-4 we will name the dissenters) Zero

5)      Did the MPC announce a likely start date for the active sale of gilts (and if so when)? Yes, shortly after the September meeting, before the end of the month. A confirmatory vote will be held at the meeting.

6)      Did the MPC announce the pace of gilt sales? Yes, GBP 80 bln in the first year, with estimated GBP10 Bln a qtr in active sale.

7)      Did the MPC drop its previously formulated June guidance? No, the only difference was the use of "the scale, pace and timing of any changes in the Bank Rate ... reflect the outlook" vs any further increases.

8)      Did the MPC still point to the possibility of "forceful" action if required? Yes

9)      UK CPI rate in two years’ time at market/constant rates (mode)? 2.00% / 2.53% in 2024 Q3.

10)   UK CPI rate in three years’ time at market / constant rates (mode)? 0.76% / 1.27% in 2025 Q3.

11)   How were the risks to the CPI forecasts described? Two way, largely based on energy price developments.

12)   UK GDP forecast for Y/Y Q3-2023/Q3-2024 at market rates (mode)?  -2.07% (Q3-2023) / -0.04 (Q3-2024)