Appreciation of sterling worries the BoE MPC

The most important news from the minutes is that the MPC has become a bit more worried about the appreciation of sterling. 

The minutes states that 'divergent monetary policy trends, as well as stronger prospects for growth in the United Kingdom than in the euro area, might continue to put upward pressure on the sterlingexchange rate. 

This had the potential to prolong the period for which CPI inflation would remain below the target and exacerbate the risk that lower expectations of inflation might become more persistent.' 

Danske Bank notes...

The UK is more open relative to the US and hence movements in sterling are followed more closely by the MPC. The appreciation of sterling feeds into headline inflation through lower import prices.