Shadow MPC Vote Released; Narrower Margin this Time Around

The Shadow MPC results have been released showing a narrow 5-4 decision to cut rates with those voting to cut disagreeing on the size of the cut. The majority however is in line with what is forecast for today’s real decision due at 12:00GMT. However, as reflected by the narrow margin of the vote, there are those now questioning the impact of further rate cuts at this juncture with the central bank needing to focus more on a quantitative easing approach. Additionally, there are concerns about the impact at this point of excessively reduced rates on profitability at the local banks. While Sterling is once again offered on the day against the buck (1.4140), the single currency has been showing better bid on the crosses.