Good old Spencer recently joined Martin Weale in calling for 25 bps rate hike.

  • UK inflation likely to be above target for next year or so, monetary policy “extraordinarily loose”
  • Risk inflation could exceed BOE February forecasts due to global price pressures. Could erode MPC credibility
  • Cautious about taking comfort from relative stability of surveys of inflation expectations
  • Danger public may conclude above target inflation means MPC tolerates lengthy CPI deviations from target
  • MPC must balance risk of slow recovery versus risk of extended period of above-target inflation

All pretty much what you’d expect from a monetary hawk. Has done nothing to lift sterling, cable at 1.6215, EUR/GBP up at .8698.