No one calling for a rate hike anymore.

Cable down through 1.6400, presently at 1.6370.

  • Posen voted for more QE (bless his little cotton socks)
  • “Some members” of MPC considered more QE, case “not yet strong enough” but QE may be needed if downside risks materialise
  • Euro zone biggest threat to UK , but most MPC reluctant to react before risks crystallise
  • Most MPC judged balance of risks to medium term CPI outlook had clearly shifted to downside
  • Some MPC still concerned about upside risks to inflation (get over it), but recent developments weakened case for rate hike
  • MPC judge it increasingly likely that global slowdown will last longer than previously assumed
  • Likely that underlying Q2 growth was stronger than headline figure, but forward-looking indicators subdued