BoE upgraded growth outlook while unemployment rate forecasts are lowered substantially. Inflation is expected to stay close to target.

–    2014 GDP to 3.5% from 3.4%, 2015 growth to 3.0% from 2.9%, 2016 growth to 1.8% from 1.9%

–    LFE unemployment rate lowered to 5.9% from 6.3% in 2014, to 5.6% from 6.0% in 2015 and to 5.4% from 5.9% in 2016

–    Q4 inflation at 1.9% (1.8% prev) in 2014, 1.7% (1.8% prev) in 2015 and 1.8% (1.9% prev) in 2016

BoE also says economic slack is falling faster than expected, but was more effective slack previously than MPC expected. The bank reiterates that rates will need to rise as economy normalizes.

 On the flip side, BoE cuts pay forecast. Carney’s comments that pay growth is “remarkably weak” seems to be the main surprise.

We were waiting for another 80 points lower from our prediction yesterday which played and we have now taken our profit.

It now looks like it went into a downwards trend so my advice here is to sell rallies and breakout of any major levels.

Good luck trading.