- housing activity has slowed more than expected
- small chance of CPI expectations drifting lower
- risk that domestic spending won’t offset weaker exports
- Weale & McCafferty still calling for immediate rate hike of 0.25%
- business investment growth remained buoyant
- majority see a risk that growth may soften further
Seems like another case of sell rumour buy fact as GBPUSD rises to 1.5631. EURGBP back down to 0.8016 but as I said in my preview there is a lot of the dovish talk already factored in.
The upbeat/hawkish headline on slack, despite the BOE expressing accompanying risks, appears to have given bulls enough reason to stick their head above the parapet again
On a closer read the Minutes seem to still be pointing to downward pressure on inflation in the short term but that the reduction in slack still expected to provide upside pressure over the next 2-3 years
Full Minutes can be read here
