More colors likely on the timing of BOE's first rate

Following on from the Warsh Review, Thursday's meeting will mark the first meeting under the new meeting system: the outcome of the MPC meeting, the minutes and the Inflation Report will all be published at the same time.

"The Bank of England is set to keep its key rate unchanged at 0.5%", says Societe Generale.

However, recent MPC Member speeches have shown a gradual shift towards a more hawkish stance. One or two members may even decide to vote in favour of a rate increase this month. 

Moreover, in a recent speech, Mark Carney signalled that the first rate increase will come at around the turn of the year. 

"As a result, while a rate hike before the end of the year cannot be ruled out, the majority of the MPC will continue to err on the side of caution until early next year", added Societe Generale.