Bank of England Monetary policy:
The MPC has decided to maintain the monetary policy on hold, and, against the market's hope, added a dovish line to their statement.
"The Committee does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably."
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BOE, the US Fed and Inflation:
Rising inflation in both countries has markets on edge.
Central bank reassurance that it is temporary, as indeed a good portion of the price gains are, does little to assuage market concerns.
The Fed's economic and rate projections at the June 16 meeting, provided a substantive change in outlook. Rate hike forecasts moved into 2023 if not sooner.
Markets prefer action to words, and promises of action to situation monitoring.
The Fed "Projection Materials' suggests change, the MPC statement does not, at least not yet.
The pound and the dollar will take the appropriate directions.