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Preview: BoE's Hawks May Find Firming Domestic Costs a Reason to Act Soon
The Bank of England (BoE) will most likely keep monetary policy unchanged in October, and will most probably keep it that way for some time to come if economic performance keeps softening, and price pressures remain too weak to return the CPI inflation back to the 2% target in the medium term. Regarding this Thursday's vote, market participants again expect one member, most probably Ian McCafferty, to vote for a 25 basis-point rate hike, just as he did in August and September. Nearly three quarters of the downward deviation from the official inflation target comes from external sources such as cheaper energy and ... (full story)