Here we go with the headlines
- unit labour cost increases less than needed to return inflation to target
- UK GDP likely to grow at +0.6% qq in Q3
- past appreciation of sterling likely to weigh on CPI
- domestic cost pressures need to be stronger
Seems like the MPC have renewed concerns on their inflation forecasts or is my glass just half empty?!
- near term inflation outlook has weakened since Aug
- some MPC members see shorter lag between rate change and CPI impact
- domestic demand, consumer spending remain resilient
- spare capacity diminishing but limited in some sectors
GBPUSD a tad lower at 1.5331 as vote and Minutes spring little by way of surprise. EURGBP a little higher at 0.7365
- ONS data revisions showing growth slowing modestly over past year could point to weaker outlook but such" gentle decelerations" typical of past economic cycles. Supply and demand returning to balance
- few signs so far of emerging markets having "material effect" on advanced economies
Only a matter of time. Don't keep your heads in the sand too long
Doesn't sound like they're in a rush to hike rates anytime soon. My view remains unchanged.
Full MPC Minutes and mon pol summary here
