• MPC voted 7-1 in July meeting to keep rates at 0.5%, Sentance voted for 25 bps
  • Voted 8-0 to keep QE at 200 bln
  • Considered arguements in favour of both “modest easing” and “modest tightening” of policy stance
  • Growth likely to weaker than previously expected but inflation higher for a while at least
  • Prospects for GDP growth 2probably deteriorated” over month, medium term outlook may be weaker
  • Budget measures likely to have pushed down output path a little but reduced risk to growth from sharp rise in longer term interest rates
  • CPI likely to be higher through rest of 2010 than forecast in May inflation report. VAT rise to push inflation higher, especially in 2011
  • Risk private sector inflation expectations may rise, but so far little evidence of this and pay growth subdued
  • Most MPC members felt spare capacity would bring inflation back to target in medium term once one off factor had worn off

Well if any of that told you something you didn’t already know, then I suggest you get out more

:)

But I guess I can’t really talk. I convinced myself this morning that a Mervyn King press conference accompanied the release of the minutes. Getting old sucks. Memory’s shot to pieces.