Bank of England to hike in November?

The MPC's August meeting will be very important as this will be the first time that there is the new 'Super Thursday' setup. The policy announcement, minutes and the new Inflation Report will all be released at the same time. Focus is also on the new projections.

"The two hawks, Martin Weale and Ian McCafferty, are expected to vote in favour of increasing the Bank Rate at this meeting", says Danske Bank.

As mentioned, Bank of England ia still expected to hike rates in November this year as the medium-term inflation outlook still calls for tighter monetary policy. That said, the low core inflation, strong GBP and the timing of the first Fed hike present downside risks to our call, as they imply that the MPC may be more patient with the bank's first rate hike. 

However, the 'conditional deal' between Greece and its creditors implies less uncertainty with respect to the economic recovery in Europe and is thus supportive for the November call.