Minutes from the Bank of England MPC meeting now out

  • flattening of wage growth could be partly due to fewer hours worked
  • latest UK Budget statement might reduce drag on demand in 2016
  • no mechanical link between BOE policy and other CBs
  • UK policy stance determined by UK inflation outlook
  • repeats headline inflation to stay below 1% in H1 2016

Nothing I can see that's going to worry the doves

GBPUSD falling below 1.5150 EURGBP up through 0.7220

  • marked fall in oil prices increases likelihood headline inflation will remain subdued
  • would need sustained firming in domestic cost pressures to return inflation to 2% target in around 2 years

Full Minutes here