The eagerly awaited Minutes now released
- inflation pick-up around year end still remains likely
- UK productivity has begun to increase
- core UK inflation subdued but may be firming
- MPC majority says upside CPI risk relative to target
- some members see overshooting of 2% target
- CPI likely to stay near zero for a few more months, volatile oil prices increase uncertainty
- continues to see "healthy domestic expansion" in UK
- higher productivity is offsetting higher wages
- downside risks to global activity have probably increased but not enough to affect August forecasts
Major agenda as per my preview with inflation risks and GBP strength a focus but they seem somewhat unperturbed to global risk at the moment which is a little churlish at least
GBPUSD enjoying the ride to 1.5448 so far just ahead of the 1.5450 area I highlighted. Market expecting a more dovish report
EURGBP low so far 0.7243 with more bids into 0.7200-30
Full Minutes here
