MPC likely to remain in limbo

June looks like being another month of no change for the Monetary Policy Committee. Although inflationary pressures have eased recently, the role of temporary factors means the Committee is likely to place little weight on this development. Meanwhile, a run of reasonable economic data, along with a further loosening of monetary conditions, including a softer exchange rate, will further strengthen the hand of the Committee’s hawks. But another month of inaction will raise further question marks over what difference Mark Carney can make when he arrives as Governor in July.