Danske Research reviews today's June BoE meeting.

"The Bank of England (BoE) kept Bank Rate unchanged at 3.75% as widely expected. The decision was taken with a 7-2 vote, with Pill and now also Greene voting for a hike to "insure against the possibility of larger second-round effects". Mann, although not voting for hike, was singled out with more inflation worries than the rest of the hold camp. Convinced, "a forceful Bank Rate decision can have a quick effect on inflation and inflation expectations", she stuck with a hold decision. The deciding vote is often Governor Bailey's and as he puts it, he is "content at the present time with holding"," Danske notes.

"The meeting today has not changed our view that the most likely outcome is an unchanged Bank Rate for the coming year. Although, core PPI inflation remains quite modest, risks to the inflation outlook remains to the upside given businesses' intention to increase prices quite steeply according to the PMI survey. An uncomfortable period with elevated inflation also lies ahead due to increased energy price caps. The slowing economy, cooling labour market and now also lower oil prices suggest that core price pressures will not increase more than what the BoE will accept, though," Danske adds.