LONDON, June 20 (IFR) - Governor King's speech and the subsequent credit easing measures announced last week suggest limited usefulness of the June minutes released today (08.30GMT). However, they will act to support the view that the BoE is concerned about contagion channels and started to discuss ways to help the economy/banks.
What will also come through in the minutes is confirmation that outgoing member Posen voted with Miles for a further expansion of QE. A switch from other members to the easing camp would be a surprise and would suggest the prospect that further easing will be delivered sooner rather than later after the GBP50bn expected at the July meeting.
We still look for a GBP50bn expansion in QE at the July meeting especially as King flagged this in his "case for a further monetary easing is growing" comment last week.
What will also come through in the minutes is confirmation that outgoing member Posen voted with Miles for a further expansion of QE. A switch from other members to the easing camp would be a surprise and would suggest the prospect that further easing will be delivered sooner rather than later after the GBP50bn expected at the July meeting.
We still look for a GBP50bn expansion in QE at the July meeting especially as King flagged this in his "case for a further monetary easing is growing" comment last week.
