The UK June labour-market data are due out, whereby the main interest will be not so much the unemployment rate as average earnings.
The BoE's prediction that inflation will reach the 2% target within two years is after all based largely on the bank's expectation of rising wages. These have in fact increased strongly in recent months. So if today's average earnings figures really do reveal solid growth, there will be a greater chance of Council member Martin Weale also 'crossing the floor' at the next meeting in September to join those who, like Ian McCaffery, favour a rate hike.
Commerzbank notes David Miles's statement, it is only the downward revision of inflation forecasts at the short end - based on a firm pound and a falling oil price - that has so far kept him in the anti-camp. He is also in favour of a rate hike.
Market players disappointed on 'super Thursday' by the BoE's dovish stance may thus soon be mollified if average earnings figures prove good, and may start buying sterling again, says Commerzbank.
