All the day“s economic and financial news, including the Bank of England“s interest rate vote and a eurogroup meeting on GreeceLatest: Bank votes 6-3 to leaves rates on holdHaldane, McCafferty and Saunders vote to raise ratesEarlier:UK deficit fell to £5bn in May, best since 2005Economists: Government has more room to boost NHS spending 2.11pm BST Foreign exchange dealer Argentex suggests the next UK interest rate rise might come in the autumn, not his summer.But it all depends on whether growth picks up, after slowing to just 0.1% in January-March.An August move is still possibly too soon, but November is now far more realistic. We remain optimistic of a sterling recovery, aside from the ongoing political risks, we are moving closer to monetary tightening.We“ll need to see stronger economic fundamentals in the short-term. If the shaky first quarter was just an blip then the MPC is likely to act.` 1.25pm BST A new Brexit crisis could derail the Bank of England from raising interest rates in August, despite Haldane“s hawkish conversion.Silvia Dall“Angelo, senior economist at Hermes Investment Management, explains:The Bank seems determined to deliver one more hike in the second half of the year, justified by a tight labour market and an economy now working close to potential. However, there are several reasons to err on the side of caution. In particular, recent hard data on industrial production and surveys on economic activity suggest that the prospects of a significant rebound in economic performance are uncertain following a weak Q1. Moreover, risks of a disruptive Brexit event down the road are still high. 1.18pm BST City economist Sam Tombs of Pantheon has spotted that the pound started to rally just before the Bank“s decision was published.Sterling was trading at $1.310 at 11.50am, but had snuck over $1.313 by 11.59am:That`s quite a suspicious appreciation of sterling prior to the MPC`s 12pm decision, if you ask me. Was Haldane`s vote switch leaked? pic.twi ...
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