More MPC Members Tilt Towards A Hike

Published 07/22/2015, 08:46 AM
Updated 05/14/2017, 06:45 AM

Today the Bank of England (BoE) released the minutes from its July meeting. As expected, the Monetary Policy Committee (MPC) voted unanimously in favour of keeping the Bank Rate and the stock of purchased assets unchanged at 0.50% and GBP375bn, respectively.

There were many discussions about wage growth and domestic costs as average weekly earnings have picked up more than expected in recent months . The members disagreed about whether the pickup was a sign of increasing inflationary pressure or not. For ‘some members’ it was a sign that ‘inflation might reach the 2% target sooner than anticipated’, for others not. Hence, wage growth figures will continue to attract much attention in the coming months as wage growth remains a key determinant for the timing of the first hike.

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