BoE’s monetary outlook

The Bank of England's MPC meeting due today will discuss on bank rates. The central bank is expected to hold the current bank rates unchanged. Analysts argue that the Bank is unlikely to raise interest rate until Q4 2016. 

The weak global economic outlook, the fiscal consolidation, weak global commodity prices and the risks to growth and asset prices may insist the MPC to postpone the rate hike until 2017, argues Lloyds Bank.

In contrast, soften productivity, downside risks to the pound, tighten labor market, expected rise in commodity prices may force the central bank to consider an early rate hike.

"For now, we maintain our view that the MPC will start raising Bank Rate next summer, but remain alert to how the balance of risks shifts over the coming months", added Lloyds Bank.