The chaps in the UK took some time off from watching trains and eating pork pies to keep us well informed of Bank of England developments as the August monetary policy meeting Minutes were published:
- Bank of England MPC votes 2/7
- BOE MPC Minutes: Most MPC see merit in waiting for firmer evidence that wage growth will come before raising rates
- BOE hawks stretch their wings after voting for rate rises
- How are we left in pound land after all that excitement?
Following up … Nomura have sent out their thoughts in a client note, shifting back their forecast for the first rate hike from November 2014 to February 2015 (bolding is mine):
- “At the August MPC meeting two members voted in favour a rate hike, but the majority seem relaxed about the risks of waiting too long.
- They are watching wage growth in a way that appears inconsistent with its backward-looking nature and the statements recognising that fact in the Inflation Report
- We doubt there is sufficient time for the hesitant MPC members to see enough evidence here and hike, so we are pushing our rate forecast back by three months to February 2015“
