What is being referred to as a "vote"?
Interest rate decisions are made by a committee within the central bank, such as the UK’s MPC and the US FOMC. These members will vote on whether to hike, keep unchanged or cut interest rates. Certain Central banks, such as the Bank of England, made public how many votes each option obtained.
Why is it important to the currency?
To see the effect of interest rate changes, please click on the “rate decision section”. Sometimes central banks may choose a specific form of action, but the number of votes may indicate a change in the future. For example, the Bank of England may decide to hike interest rates by 0.50%, but for the first time in recent months, 2 of its nine members vote against hiking. This be taken as a dovish signal and may cause the currency to decline or limit bullish price movement.
Why is it important to the Stocks?
The Bank of England Votes can only be necessary for UK-based companies and indices such as the FTSE100. UK equities are affected as the UK’s interest rates influence them. If votes indicate that interest rates will continue to rise or start to rise, it will be negative for the stock market. If votes suggest that interest rates will stop rising or start being reduced, the UK stock market may positively react.