The Bank of England keeps monetary policy unchanged, but a 6-3 vote pattern

• The Bank of England rate-setting Monetary Policy Committee decided to hold the Bank rate unchanged at 0.50% in June in a 6-3 vote pattern.
• The Bank of England also decided to keep the asset purchasing program unchanged at £435 billion in June.

The Bank of England decided to keep the Bank rate and the asset purchasing program unchanged at 0.50% and £435 billion respectively in June.

Headline inflation remained unchanged at 2.4% in May with core inflation at 2.1% y/y, but the UK labor market saw strong job creation indicating that the first-quarter GDP slowdown was potentially a temporary blip.

Wage growth in the UK remains muted dwelling below 3.0% y/y with real wages barely positive.

The hawkish twist in the monetary policy statement or hawkish turn in the voting pattern is expected to support GBP/USD that fell almost 12 big figures since Apri 17 this year.