BOE MPC Minutes: some withdrawal of stimulus likely appropriate in coming months

The accompanying BOE Minutes for the September meeting revealed that policymaker were in broad consensus that some withdrawal of monetary stimulus is likely to be appropriate over the coming months in order to return inflation sustainably to target.

Here are the key takeaways:

   •  Majority of MPC think a lessening of 'trade-off' evident if economy continues on current path
   •  All MPC think rate hikes will be faster than current market pricing, if economy follows August QIR projections
   •  Early Q3 data stronger than committee anticipated in August Report
   •  Recent developments reinforce belief slack to disappear more rapidly than expected
   •  Underlying pay growth has showing signs of recovery, albeit still modest
   •  There remains considerable risk to the economic outlook
   •  All on MPC agree rise in Bank rate should be 'gradual' and 'limited'
   •  Overall, UK weighted world GDP growth in Q2 slightly stronger than expected by MPC
   •  MPC notes spot oil prices 12% higher than in August Report