BoE: No fireworks on offer today - Westpac

Analysts at Westpac, expect BoE to keep bank Rate and asset purchase program unchanged in July after June saw a hawkish tilt from Bank of England.

Key Quotes

“While the Bank Rate was left on hold, three of the eight members voted for an immediate rate hike in June, up from just one in May. Underlying this shift in stance was earlier firmness in economic activity that raised questions about how much of the recent pick-up in inflation should be looked through.”

“Rate hikes are only a realistic possibility if there are convincing signs of resilience in economic activity. However, since the June meeting, inflation has softened and GDP growth has been subdued. We expect that these developments will see renewed caution among the MPC, with the Bank Rate and asset purchase program expected to remain unchanged in July.”