FXStreet (Mumbai) – The minutes of the latest monetary policy decision released today showed the policymakers unanimously believe the rate hikes, when they happen, are to be more gradual.
BOE minutes show mpc voted 9-0 maintain QE bond purchase total, 8-1 to maintain rates.
Key Points
All members agreed rate hikes, when they come, are to be more gradual. MPC expects Q3 UK growth of 0.6%.
Some members noted recent evidence that lags in response of inflation to interest rate changes appeared shorter than previously thought.
Sterling has depreciated slightly, but still at high levels, which is depressing import price growth and CPI.
The near term CPI outlook has weakened, MPC now sees inflation below 1% until spring 2016 (previous near 0% until turn of year).
ONS data revisions showing growth slowing modestly over the past year could point to weaker outlook. Few signs so far of emerging markets having “material effect” on advanced economies.
Unit labour cost increases less than needed to return inflation to target, domestic cost pressures need to be stronger.
(Market News Provided by FXstreet)