Charles Haresnape, CEO, Gatehouse Bank:
“The unofficial pact that has existed with markets over the Bank’s forward guidance is still well and truly intact.
“Disappointing GDP figures will have dominated the MPC’s agenda to a large extent, getting the vote out for staying put.
“This close to the summer holiday season a rise would have brought a smile to the faces of holidaymakers, who would have seen their Pounds stretch a little further, but would have hurt the UK’s exporters. The Bank simply can’t please everyone all of the time.
“Britain’s savers would have been key victors had rates risen, so it’s unfortunate for them that they’ll continue to see returns stuck in the doldrums by historic standards, with rates still below the Bank of England Base Rate in many instances.
“Hints were as heavy as they have ever been in the run up to this decision with the slew of poor economic data meaning the coffin lid on this potential rates hike was welded, instead of nailed, shut by the time decision day arrived. The Pound’s dive in the week leading up to the decision looked a confident one too, and those traders selling Sterling were spot on.”
