- Weale and McCafferty say its desirable to raise rates before wage pressures show due to monetary policy lags
- say early rate rise would faciliate aim to ensure future rate rises are gradual
- unclear risk of adverse market reaction would be lessened by delaying rate rise
- most MPC members see insufficient inflation pressures to justify rate rise
- most MPC members fear unexpected rate rise could push up sterling and further impede UK economic rebalancing
- potential over reaction by markets not necessarily a reason to delay rate rise if merited by data
- most MPC members expect down side risks of raising rates to diminish over time
- says current monetary policy operational framework under review, can be used to implement rate rises in near term
Link to full Minutes here
As per my preview I think the 7-2 vote was to be expected and therefore see this knee-jerk higher as another sell GBP opportunity but may have to be patient. Those bids at 1.6600 that we highlighted earlier certainly played their part in providing a good base and I did warn we had come quite a long way already in the past 24 hours
GBPUSD currently 1.6663 from 1.6680 highs EURGBP 0.7977 having triggered stops below 0.7980 to post 0.7970
