Comments from the BOE's Cunliffe:

  • Getting close to "end of reservoir of spare labor supply"
  • Sees reasons to think productivity will rise in 2016 and 2017
  • Sustained pay increase without pickup in productivity would put MPC under pressure to act
  • Watching pay, productivity 'very carefully'
  • UK inflation expectations well anchored

The question about the UK and US is: Who will get to 1.00% rates first. The Fed will hike first but the BOE is at 0.50% already. Markets are starting to believe Carney will get there ahead of Yellen.

In any case, cable if finally off the boil today after rising in 9 of 10 sessions.