BoE MPC members differ on rate change

Mr Haldane, chief economist of EoB argued in a speech that growth risks are skewed to the downside and he has "considerable sympathy" with the argument that interest rates should be "lower for longer" in order to avoid risks associated from raising rates too soon. Under these circumstances, he suggested that "a policy of early lift-off could be self-defeating. It would risk generating the very recession today it was seeking to insure against tomorrow", notes Commerzbank.

This has done little to change market interest rate expectations which continue to fully price a hike only in May 2016. Nonetheless, it does appear as though there are considerable differences of opinion amongst MPC members and even if Mr Weale does change his vote to push for a rate hike in the coming months, he may plough a lonely furrow for some time before other Committee members swing his way, and the chances of an increase before year-end appearremote at present, says Commerzbank.