State Street has issued comments on the Bank of England rate decision, delivered for the last time today by departing Governor Mark Carney.

Michael Metcalfe, Global Head of Macro Strategy at State Street Global Markets, said: "Given how dovish the recent Bank of England (BoE) commentary has been, the unchanged decision is a small surprise, to me at least!

"Even though forecasts have been revised down, the bank has stuck to its line that more downside surprises would be needed to warrant a cut, and if the economy actually performs as forecast tightening maybe required.

"This is longhand for a data-dependent neutral policy stance, so we are firmly in the data's hands once again."

Antoine Lesne, Head of EMEA strategy and research for SPDR ETFs, added: "Despite the recent rise in odds of a cut, the Bank of England (BoE) decided to keep rate on hold at 0.75 percent.

"The recent improvement in economic sentiment post the December election meant it was not felt necessary to press ahead with an insurance cut. This offers Mark Carney's successor, Andrew Bailey, the potential baptism of fire having to cut at his first meeting if the activity data starts to fade.

"Expect the curve to bear flatten, driven by the front end. Sterling should gain a little but will be heavily data sensitive from here."

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State Street has issued comments on the Bank of England rate decision, delivered for the last time today by departing Governor Mark Carney.

Michael Metcalfe, Global Head of Macro Strategy at State Street Global Markets, said: "Given how dovish the recent Bank of England (BoE) commentary has been, the unchanged decision is a small surprise, to me at least!

"Even though forecasts have been revised down, the bank has stuck to its line that more downside surprises would be needed to warrant a cut, and if the economy actually performs as forecast tightening maybe required.

"This is longhand for a data-dependent neutral policy stance, so we are firmly in the data's hands once again."

Antoine Lesne, Head of EMEA strategy and research for SPDR ETFs, added: "Despite the recent rise in odds of a cut, the Bank of England (BoE) decided to keep rate on hold at 0.75 percent.

"The recent improvement in economic sentiment post the December election meant it was not felt necessary to press ahead with an insurance cut. This offers Mark Carney's successor, Andrew Bailey, the potential baptism of fire having to cut at his first meeting if the activity data starts to fade.

"Expect the curve to bear flatten, driven by the front end. Sterling should gain a little but will be heavily data sensitive from here."