BoE data depended rather than Fed-dependent

As expected the MPC members again voted 8-1 for keeping the rates unchanged and unanimously to maintain the stock of purchased assets at the 9 December MPC meeting. This was the fifth time in row that the MPC member Ian McCafferty preferred an increase in the bank rate by 25 basis points.

The December MPC minutes stated that overall there has been little news since the November Inflation Report. The only more material news on the month had been in costs. The Committee noted that  the price of oil had fallen markedly again, increasing the likelihood that headline inflation rates would remain subdued, and nominal wage growth has levelled off".

Furthermore, the minutes again stated that "There was no mechanical link between UK policy and those of other central banks, and the UK policy stance would be determined ultimately by the inflation outlook".

"We keep our forecast that the BoE will start hiking rates in Q2 next year", says Nordea Bank.