External risks remain for UK's inflation

However, external factors will also need to be taken into consideration while measuring inflation risks. The July MPC minutes noted that "for a number of members, the balance of risks to medium-term inflation relative to the 2% target was becoming more skewed to the upside" and that "for these members, Greece played a major role in their decision."

The developments in China have also been quoted as one major uncertainty by Governor Mark Carney. On top of that, further sterling strength would have a direct downwards impact on goods prices.

"Overall, a first rate hike before the end of the year cannot be ruled out. However, given in particular the still elevated external risks, the BoE will wait until early next year before pulling the trigger", says Societe Generale.