The following is Barclays Capital's first reaction on today's BoE minutes from the July meeting.
"The UK Monetary Policy Committee (MPC) voted unanimously to keep monetary policy on hold at its July meeting, with Bank Rate unchanged at 0.50% and the stock of asset purchases maintained at £375bn.
Members of the MPC had an extensive discussion about the margin of spare capacities, especially in the labour market, and continued to hold a wide range of views about the degree of slack in the UK economy, which is likely to be the main focus of the August Inflation Report.
We continue to expect the first increase in Bank Rate to take place in the fourth quarter of this year."
Philippe Gudin & Fabrice Montagne - Barclays Capital
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