RBS now expects first hike in Bank Rate in August 2015, instead of February

In the wake of Tuesday's much weaker than expected reading on consumer prices economists at RBS now see the Monetary Policy Committee's first increase in Bank Rate arriving in August 2015.

They had previously forecast a first increase in February.

UK consumer prices advanced at 1.2% clip in year-on-year terms in September, after a reading of 1.5% in August. Analysts had been expected a smaller decrease, to 1.4%.