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BoE delivers “surprise” by leaving rates on hold & reinforcing GBP sell-off

• Slim majority (5 vs. 4) of MPC members voted to leave policy rate unchanged.
• Decision was finely balanced but case for another hike was not as compelling.
• Updated guidance signals shift towards keeping rates high for longer.
• Modest pick-up planned for pace of QT in year ahead.
• MPC update reinforces GBP sell-off although UK rate market reaction has been more nuanced.