Bank of England voted 9-0 to keep rates at 0.5%, QE at £175 bln

Bank of England voted unanimous 9-0 to keep rates at 0.5%, QE at £175 bln.

MPC were unanimous that recent developments not enough to justify immediate change to rates or QE.

Evidence suggests QE’s effect on asset prices “had been substantial” and of type planned.

Higher share prices, lower short-term rates and weaker sterling likely to boost future output. Q-3 output likely to be close to central projection in August inflation report.

Inflation likely to rise in short-term due to base effects, VAT, but medium-term outlook anchored.

Cable experiencing relief rally, moving back above 1.6500. Presently at 1.6510 from around 1.6470 just ahead of the release of the minutes.

Technical resistance now at 1.6535 and 1.6550/60.