Halister News

(Bloomberg) -- The BOE voted unanimously to leave rates unchanged at 0.5% and the MPC said they were more likely than not to lift the rate in the next three years. HOW SPLIT WAS THE VOTE?

• There was a 9-0 vote to keep rates and the stock of purchased assets unchanged
• NOTE: Analysts surveyed by Bloomberg had expected an 9-0 vote to leave rates unchanged

WHAT THE MINUTES SAY ABOUT THE DIRECTION OF THE NEXT RATE MOVE?

• More likely than not Bank Rate will need to increase over the forecast period to ensure inflation returns to the target in a sustainable fashion
• There is no mention of any discussion about a rate cut

WHAT DID THE BANK SAY ABOUT ASSET PRICES AND INFLATION?

• Asset prices have generally been supportive for U.K. growth and inflation with the prices of risky assets rebounding
• Oil prices have risen, U.K. short-term interest rates and sterling have fallen relative to the conditioning assumptions that underlay the projections in the February Inflation Report

WHAT DID THE MPC SAY ABOUT BREXIT?

• Uncertainty surrounding the forthcoming referendum on U.K. membership of the EU is likely to have been a significant contributor to sterling’s fall and may also delay some spending decisions and depress growth of aggregate demand near term
• There is a range of views among MPC members about the balance of risks to inflation

ANY FURTHER INSIGHT ON WHY WAGE GROWTH REMAINS MUTED AND THE OUTLOOK?

• The return to higher rates of inflation should in time support wage gains
  • Inflation expectations remain well anchored, although the BOE remains watchful for signs that low inflation is having more persistent second-round effects on wages