- Voted 8-1 to keep QE at 200 bln
- Dale and Weale voted for 25 bps rate hike
- MPC judges downside risks to medium term inflation have risen in past month, upside risks stable (cable lower)
- Some members think possible more QE might be warranted if downside risks materialise (echoes Fishers’ recent comments)
- Current weakness of demand growth likely to persist longer than previously thought
- GDP growth weak, latest data suggest likely to be below historic average in middle of 2011
- Public inflation expectations more firmly rooted than might have been expected (that’s cos public are idiots)
- Weale and Dale say case for rate hike rise remains strong, despite weak growth outlook data. Concerned rate of wage growth consistent with low inflation may have fallen
Excellent stuff. Seems majority of MPC got their heads screwed on properly. Shame about Weale and Dale. But at least Sentance is gone.
No rate hike anytime soon in these here parts, yee haw!!!!
Cable down at 1.6150 having been as low as 1.6142 in wake of minutes. Had reports of a UK clearer with strong Scottish ties selling up around 1.6220 earlier and just hearing they’re still selling.
UPDATE UPDATE: Some “corporate” buy interest has emerged in cable slowing the sell-off. We’re presently at 1.6150 having posted session low 1.6137.
