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5 Feb 2016
BoE: Unanimous to keep rates on hold – Deutsche Bank
Research Team at Deutsche Bank, suggests that in yesterday’s Bank of England MPC meeting there was no change to current policy as widely expected, it was interesting to see a now unanimous vote with Ian McCafferty having retracted his previous call for tightening.
Key Quotes
“Medium term inflation forecasts were little changed but we did see the Bank downgrade its growth forecasts with 2016 growth now expected to be 2.2% (cut from 2.5%) and 2017 growth downgraded to 2.4% from 2.7% previously.
The minutes showed that the MPC judges the risks to the central projection to be skewed a little to the downside in the near term and it was noted that ‘low realized inflation will continue to moderate the increase in wage pressure in the near term’.
In the post statement conference, Governor Carney didn’t sound too overly-bearish and made mention to the fact that the down-ward pull on inflation from overseas will be countered by more sustainable cost pressures at home.”
Key Quotes
“Medium term inflation forecasts were little changed but we did see the Bank downgrade its growth forecasts with 2016 growth now expected to be 2.2% (cut from 2.5%) and 2017 growth downgraded to 2.4% from 2.7% previously.
The minutes showed that the MPC judges the risks to the central projection to be skewed a little to the downside in the near term and it was noted that ‘low realized inflation will continue to moderate the increase in wage pressure in the near term’.
In the post statement conference, Governor Carney didn’t sound too overly-bearish and made mention to the fact that the down-ward pull on inflation from overseas will be countered by more sustainable cost pressures at home.”