The likelihood of a UK rate rise was pushed further back today as the MPC voted unanimously to hold rates yet again, with swap markets even indicating a 33% chance of a rate cut this year.
Today, the Bank of England published both its Monetary Policy Committee (MPC) minutes for the meeting on 2-3 February and its latest Quarterly Inflation Report. Ian McCafferty, the lone hawk on the MPC over the past few months, changed his mind as he felt wage pick-up had not been as fast as expected, leading to a unanimous vote for the committee for the first time since August. "For one member, the more prolonged period of low inflation suggested that the pickup in the pace of wage growth would be initially more muted than previously expected; with the upside risks to inflation there...
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