BOE recently pushed back hike call to November 2016 from May 2016. Despite continued strong jobs gains, wage data have softened. Along with downward growth revisions and Brexit uncertainties, the BoE now has plenty of reasons to wait and see for longer. Recent oil price falls, by weakening the inflation outlook, give BoE plenty of room to wait.
"We expect no change from the BoE at Thursday's meeting and no signals that a change is imminent either. If anything, the minutes of the meeting could veer further into dovish territory" says BofA Merrill Lynch.
The only big question is whether the MPC vote 8-1 or 9-0 to keep rates on hold. Ian McCafferty, the sole hawk at present, is set to drop his vote for a hike at one of the next couple of meetings. Employment still gives support to his argument that the labor market has tightened enough to justify hikes (a bit like the Fed view). But the near-term inflation outlook is sufficiently subdued, and the business survey picture murky enough, that he might also prefer waiting now.


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