As expected.
- Some MPC members thought upside CPi risks has risen, others felt balance of risks not much changed
- Increasingly likely CPI would remain well above 2% target over coming months
- If recent sterling fall persists, likely to put extra upward pressure on CPi in coming months
- Mixed picture on growth; surveys up in February but weather, tax changes would make data volatile
- Clear that output likely to remain well below capacity for an extended period
- Impaired bank sector, fiscal tightening, weaker trade prospects likely to be big constraints
- Scale, timing of impact of monetary stimulus remained highly uncertain
- Continue to expect significant spare capacity to bear down on CPI once shocks wear off
- Boost to net trade from sterling fall likely, timing unclear due to uncertain growth in export markets
- Risk of rise in public’s CPI expectations ove medium term, MPC will closely review this
Cable has been up as high as 1.5336 in wake of better than expected jobs report. Initial resistance from here 1.5340.