DAVY VIEW

Despite this week’s deal between Iran and the US, rate setters at the Bank of England (BoE) are content to retain a wait-and-see outlook before committing firmly to any change in forward guidance. Today’s minutes indicate that most members of the Monetary Policy Committee (MPC), with the exception of Megan Greene, have not changed their outlook much since April’s meeting. However, we expect further dovish dataflow will see a shift in July’s meeting towards a wider discussion of rate reductions.