Attention turns to the UK with the May MPC meeting centre stage. A “no change” decision is widely expected today, although the decision is probably “live”. The previous vote was again 6-3 against increasing the asset purchase target by GBP25b. in April.
However, BoE comments have remained generally dove-ish. MPC Member Weale, for example, suggested recently that the improving inflation outlook could pave the way for more stimulus. He was one of the 6 voting for “no change” to policy at the April meeting, suggesting that a shift is not a long way off.
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Commonwealth Bank