The Bank of England may not be unanimous in its interest rate decision, due in just over an hour’s time.
A Reuters poll found that City economists predict seven of the nine MPC policymakers will vote to leave interest rates on hold, with two pushing for a rise.
At last month’s meeting, the Bank voted 8-1 to hold rates, with BoE chief economist Huw Pill the lone vote for a rate hike.
Kathleen Brooks, research director at XTB, says:
At the last meeting, one member dissented and voted in favour of a hike. We could see a similar 8-1 split in favour of no change, later today.
Hawks at the BOE, including Megan Greene, are likely to point to the high levels of input inflation, which could eventually boost consumer prices. Added to this, inflation will rise in July, due to the 13% rise in the energy price cap.
The market will hope that the spike in price pressures caused by the energy price cap is temporary and does not lead to a wage-price spiral in the UK.
