Reasons for BoE's extra caution

The BoE will not be short of reasons for extra caution this month. Chinese worries and financial market turbulence are front and centre. 

Near-term inflation prospects have also softened. Oil prices lie around 9% lower than the BoE had factored into their previous forecasts. 

"In near-term, inflation forecast is cut down by a touch shy of 10bp, meaning now negative readings are expected in all of the next three months. Finally the sharp fall in the August services PMI gives a whiff of domestic wobbles".