Mark Carney re-examines the tea leaves

The markets had “a brief summer flirtation with the idea that the [Bank of England] might tighten monetary policy sooner than expected”, says Peter Thal Larsen on But it seems to be over now. In June, the Monetary Policy Committee voted by five to three to keep interest rates on hold, an unexpectedly narrow majority. At last week’s meeting, though, the vote was six to two.

Inflation fell back in June – to 2.6% from May’s 2.9%. And the latest Inflation Report by the Bank was “more gloomy and dovish”, says [...]