BoE will not cut Bank Rate in November, HSBC says

When it next met, in the following week, the Monetary Policy Committee would not announce another 15 basis point reduction in Bank Rate, HSBC economist Liz Martins said in a research report sent to clients.

Neither would the MPC approve another dose of quantitative easing in February 2017, as the investment bank haad previously anticipated.

When they met last August, rate-setters strongly hinted they would likely cut again before end of year if events unfolded as they anticipated in the Inflation Report, but they had not, she said.

Activity had been "markedly stronger" and Sterling was 5% lower - and Sterling oil prices had risen by 115% since January.

Hence, in its next set of forecasts the BoE could be expected to revise its projections for both gross domestic product and inflation higher, "undermining the case for further easing", she said.

Nonetheless, she added,"the vote is likely to be split whichever way it goes. While the hawks will be worried about inflation, the doves' fears over the medium-term growth and investment outlook will not have gone away."

Matters had also been complicated this time around by Westminister´s 'War of Words' on ultra-loose monetary policy.

The BoE will not want to compromise its independence, but neither will it want to run roughshod over the wishes of the government that sets its mandate and keeps it independent.