Analyst Views: What should investors look for next from the Bank of England?
ROBERT WOOD | BERENBERG
We expect the Bank to respond to the increasingly resilient outlook by hiking rates by 25 basis points in November.If there was a split vote this month, with perhaps one of the MPC calling for a hike, that could tell us a little more about the committee’s thinking.
VICTORIA CLARKE | INVESTEC
One change in the wind could come from pay growth… We expect the MPC will have debated whether it needs to update its view of the relationship between jobs gains (with an unrelenting pace of improvement in the labour market), pay growth and inflation.
EY | ITEM CLUB ANALYST
The prospect for pay growth will be the key issue for the MPC when it publishes its Inflation Report next Wednesday. The Bank’s monetary policy-makers may decide that we are simply seeing an unusually long lag between falls in unemployment and rises in pay… a rate hike before 2015 seems unlikely.