UK | MPC continues to shift in a hawkish direction

The minutes of September’s MPC meeting were more hawkish, leading markets to price in a rate hike early next year. But we think markets are getting ahead of themselves. Most MPC members still believe high inflation will prove transitory, while growth in demand is clearly continuing to soften.

What you will learn from this report:

• The decline in the number of furloughed workers through the summer has been unexpectedly slow
• Consumer confidence fell sharply in September
  
• High frequency indicators