BOE Minutes: Most on MPC expect policy to be loosened in August

The BOE minutes accompanied by the rate decision, revealed that the BOE Monetary Policy Committee (MPC) see August as mostly timing for rolling out easing measures.

Key Headlines:

Most on MPC expect policy to be loosened in August

No specific reference as to what will come next month, not enough data to draw upon for July cut

Precise size and nature of 'stimulatory measures' will be decided following staff forecasts in Aug

MPC's Vlieghe voted for a rate cut

BOE policymakers vote 9-0 to maintain stock of quantitative easing assets at 375 bln Stg (poll 375 bln stg)

BOE policymakers vote 8-1 to keep rates at 0.50 pct (reuters poll 0.25 pct)

Bank is committed to taking whatever action necessary to support growth & inflation

MPC had initial exchange of views on "various possible packages of measures"

MPC expects Q2 GDP growth of +0.5 pct vs. previous estimate of +0.3 pct

Fall in Sterling will provide some support for exports but drag on real household income growth

Shift in terms of trade likely to carry negative implications for productivity

Bank staff cut housing investment forecasts significantly, lower forecasts for house prices in near term