Barclays Research discusses its expectations for the BoE policy meeting on Thursday.
"Despite recent hawkish speeches from external member Saunders and DG Ramsden, we expect the majority of the committee to vote to keep policy unchanged at the August meeting, with only Saunders voting for an earlier end to the current QE programme. We expect the Bank to boost its short-term forecasts for growth and inflation relative to the May projections, but will likely keep the medium-term outlook little changed (much as in the May forecast round)," Barclays notes.
"We expect the Bank to repeat its view that inflation is likely to be transitory, but for them to muscle up the inflation narrative by highlighting that they stand ready to address any sustained inflation overshoot, aiming at containing inflation expectations. The Bank will likely present its latest thoughts on the sequencing of monetary tightening, aiming at broad principles rather than delivering a set of thresholds and rules that would effectively put monetary policy on autopilot," Barclays adds.