- Voted 9-0 prior to keep rates unchanged
MINUTES OF THE MONETARY POLICY COMMITTEE MEETING 9 and 10 July 2014
- MPC have no preset view on timing of rate rise, will depend on data
- Some members feel decision on rate rise had become more balanced over past few months than earlier in year
- Growth generally looking more assured but tentative indications of slight slowdown forecast in H2
- Weakness of wages in face of strong employment becoming more striking, slack may have increased
- One view was that risk of small rate rise derailing the economy has reduced, could help assess response of economy
- Size of labour market slack uncertain so pace at which it is used up may be more relevant
- Little indications of inflationary pressures building
- BOE expects Q2 growth of 0.9% before slowing modestly in Q3 & Q4. Q1 to be ultimately revised up to 0.9%
- Market response to geopolitical events and economic risks surprisingly low
- Pounds rise may reflect relative UK performance
Full statement here Overall not much for the hawks to cling to. We still await data and there’s worries of a slight slow down as the year rolls on. They’ve primed us for a higher revision in Q1 GDP and higher than expected Q2 GDP which is released Friday. GBP/USD was knocked off it’s perch up at 1.7095 to trade down to 1.7062. Last at 1.7072
