Bank of England MPC Minutes now out 12 May 2016
- Spare capacity (slack) has risen slightly in latest report
- Wide range of views amongst MPC re direction of prices & slack
- Inflation remains subdued despite slight rise in Q1
- MPC notes half of 9% currency drop blamed on Brexit risks; not mentioned previously
- Governor warns that leaving EU will have material economic effect
- Leaving EU could affect appropriate settling of Mon Pol
- External factors pose less risk than at previous QIR
- Negative impact of strong sterling likely 'past its peak'
- MPC notes continued weakness of pay growth
- More likely than not rates will have to rise over forecast horizon
- Whatever Brexit outcome, MPC to take action as required
- MPC says referendum has hit housing & commercial market
Full MPC Report here
GBP still on the rise but I'm not convinced this is so bullish. Let's see what the presser has to deliver.
