FXStreet (Córdoba) - The Bank of England (BoE) held its November monetary policy meeting on Thursday. The BoE chose a rather cautious approach to the timing of its first rate hike since the financial crisis. As a result, sterling dropped about 1% against the EUR and USD. However, USB team continues to expect a first rate hike in 1H16. Key Quotes “The BoE surprised on the dovish side, both with its stance and its November Inflation Report. Before the meeting, markets had expected the first BoE rate hike to be at the end of 2016”. “Since the US Federal Reserve has made clear that it could be hiking rates in December, a one-year gap between a Fed and a BoE rate hike seemed a bit stretched”. “However, with a clear focus on the downside risks to its economic projections, the BoE made no attempts to move market expectations into 1H16. Thus, sterling dropped on the news by about 1%”. “In our view, the picture is not as bad as the BoE has painted it to be, and we continue to expect a first rate hike in 1H16”. For more information, read our latest forex news.