MPC Minutes

Whispers of a surprise in this morning’s BoE Minutes failed to materialise and the pound traded without a murmur as the voting pattern was announced. Weale and Mcafferty will have been sat on their hands when Carney called for those in favour of a rate hike with both members having been in favour of a 25 basis point increase as recently as Q4 last year. The bank’s mandate has broadened beyond just managing inflation and Weale and Mcafferty have been the biggest champions of this shift in focus, yet record-low inflation has forced them back into the crowd to avoid questions of credibility. With UK GDP and other key indicators casting an upward trajectory, CPI proves the laggard and is the single biggest determinant once again of UK monetary policy; these 2 hawks are surveying the landscape, poised to move at the first sign of rising inflation. The conclusion of the next MPC meeting just four days after the UK election makes for a mouth-watering prospect.

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