BOE on Hold: Why Were Investors Wrong-Footed?

The bank surprised markets by maintaining interest rates at 1%, despite expectations of a hike. The governor's hawkish hints had fueled these expectations, but he clarified that action was contingent on inflation control. The decision led to comparisons with his predecessor, Mark Carney, known for unreliable guidance. The rationale for holding rates included supply disruptions and awaiting clearer labor market data, aligning with Bloomberg Economics' predictions.

What was the market's reaction to the bank's decision to keep interest rates on hold?

What were the expectations leading up to the bank's decision?

What did the governor insist regarding the bank's actions in November?

How did the bank's actions relate to supply disruptions in the market?

What reasons did Bloomberg Economics provide for the rate hike not being a certainty?