As expected, the Monetary Policy Committee (MPC) voted to maintain the Bank Rate and the stock of purchased assets at 0.50% and GBP375bn, respectively.
The minutes from the May meeting are released on 17 June. The June meeting was the first one where the MPC members had the opportunity to discuss the fact that UK is now officially in deflation (the annual percentage change in the consumer price index dipped just below zero in April). The BoE has on several occasions stated that it was likely that inflation 'could fall below zero' so it is not a given that it affected the tone of the discussion at the meeting significantly. Governor Mark Carney has previously stated that this is not 'bad deflation' but rather is good news. The reason is that it implies that the Britons are experiencing positive real wage growth for the first time since 2009, which should support the recovery.
To Read the Entire Report Please Click on the pdf File Below