The members of the Bank of England (BoE) Monetary Policy Committee (MPC) is expected to have voted unanimously to keep the bank rate unchanged at their May meeting. The minutes of the meeting, due on 20 May, will likely show policy makers’ “range of views” on the near-term outlook for monetary policy. The May Inflation Report (IR) showed CPI on target in the forecast horizon given the path implied by market rates. However, there are some key risks to this forecast, including the evolution of labour supply and productivity. A minority of MPC members are likely to have expressed a more hawkish stance, highlighting these risks and pointing out that several factors that keep inflation currently low are transitory, namely the drop in the oil and food prices and the strength of the pound versus the euro.
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