New Star: MPC minutes

Simon Ward, Economist at New Star, comments on the MPC minutes: “The unanimous vote to leave rates unchanged in August was in line with our MPC-ometer’s prediction and the minutes indicate less of a tightening bias than suggested by last week’s Inflation Report.

Coupled with yesterday’s dramatic inflation drop and a surprise further fall in average earnings growth to a four-year low, this news strengthens our belief that interest rates have peaked for the year at 5.75%.”