Bank of England released June minutes
According to the minutes of Monetary Policy Committee’s June meeting, all 9 members of MPC voted to keep the benchmark interest rate unchanged at 0.5%. The decision to keep the amount of QE program at 375B pounds wasn’t unanimous. As in the previous months, 3 members called for increase in monetary stimulus.
Some important points:
- UK economic developments in past month were generally positive in line with May inflation report.
- Inflation is likely to hit 3% during the summer and remain close to that until autumn.
- Low wage inflation suggests more benign domestic cost pressures in short-term.
GBP/USD is trading on the downside, not far from $1.5600.