BOE hawk Ian McCafferty:

  • Low CPI having material impact on wage growth
  • Wage weakness may be temporary
  • Sees signs Brexit vote may weigh on investment
  • Global downside risks remain large
  • There would be a "more compelling" case for looser policy if inflation expectations were no longer well anchored
  • When inflation rises, wages may rise 'surprisingly quickly'
  • "The reversion of my vote of no change to bank rate might be relatively short-lived"

In January, McCafferty was the lone vote to hike rates. He later reversed his position. These comments are also dovish but he said his vote to tighten could return. He's looking for higher CPI readings in May data so that highlights June as the earliest time for a shift.