Translation: Our forecasts were wrong so I’ve found a convenient excuse.

Other comments:

  • Will consider eurozone and global economy when setting rates
  • Will explore effects on inflation of exchange rate, commodity prices more fully in Nov forecasts
  • Margin of spare capacity in UK economy is small, being used up quickly

Sounds like a hawk who’s trying to climb down from the nest.

Cable is getting absolutely beaten up again, quickly down to 1.5900 and nearing the earlier low of 1.5875.