The Bank of England released the minutes from the MPC October meeting last week on 22nd October, coming in with a continued 7 - 2 vote on interests rates, and a 9 – 0 vote as expected on Asset Purchases.
Ian McCafferty & Martin Weale were again the members that voted against the proposition of leaving interest rates unchanged, sticking by their preference of increasing the Bank Rate by 25 basis points. McCafferty citing that the relatively low level and pace of decline of spare capacity as his key reason for voting for a rate hike.
Following this month’s disappointing UK CPI inflation figures (14th October 2014) http://www.abshire-smith.com/analysis/2014/10/14/weak-uk-cpi-data-misses-estimates-reducing-the-probability-of-an-early-interest-rate-hike/
GBP has been pretty volatile; it weakened against the greenback, falling to sub 1.59 during the trading session that day; reaching a low of 1.5874 a level which hadn’t been seen since November 2013 before rallying back up to nearly 1.62 just 4 trading days later on the 21st; the pair is now stabilising around the 1.61 level with a shortage of significant macro data on the horizon.