22 Jul 2015
BOE MPC Minutes: Policy decision more finely balance for “a number of members”
FXStreet (Mumbai) - As widely expected all nine rate-setters on the BoE Monetary Policy Committee (MPC) voted unanimously on the policy stance for July.
Despite the slide back to zero in inflation in June, BoE Governor Mark Carney expressly stated that rates could rise at the turn of this year.
The decision between hiking the base rate and leaving it unchanged at the current situation was becoming more finely balance for “a number of members”, the MPC minutes revealed on Wednesday.
This changed from the several previous statements which used to show the policy decision was finely balanced only for two members.
The document from the July meeting showed that for these members, the balance of risks to the medium-term inflation outlook relative to the 2% was “becoming more skewed to the upside at the current level of Bank Rate.”
The minutes also showed the policymakers viewed the recent sterling appreciation to have “a direct effect on inflation, bearing down on the CPI relative to the outlook described in the Committee’s May forecast, although the speed and degree of pass-through from movements in sterling was uncertain.”
Despite the slide back to zero in inflation in June, BoE Governor Mark Carney expressly stated that rates could rise at the turn of this year.
The decision between hiking the base rate and leaving it unchanged at the current situation was becoming more finely balance for “a number of members”, the MPC minutes revealed on Wednesday.
This changed from the several previous statements which used to show the policy decision was finely balanced only for two members.
The document from the July meeting showed that for these members, the balance of risks to the medium-term inflation outlook relative to the 2% was “becoming more skewed to the upside at the current level of Bank Rate.”
The minutes also showed the policymakers viewed the recent sterling appreciation to have “a direct effect on inflation, bearing down on the CPI relative to the outlook described in the Committee’s May forecast, although the speed and degree of pass-through from movements in sterling was uncertain.”