Softer data to keep the hawks at bay

It may not be long before one or two Monetary Policy Committee members vote for a rise in Bank Rate. But with signs that the economic data have taken a bit of a softer turn since February’s Inflation Report, this month’s decision to keep rates on hold and the scale of asset purchases unchanged is likely to be another unanimous one. That said, we still think that the MPC will raise rates before the mid-2019 date implied by market pricing.