"Next week’s MPC meeting will be crucial in the Bank’s plans to both support the economy and head off inflation that is continuing to rise, but at a slower pace.

While there will be no change to interest rates, which will continue to be held at a historically low level, the discussion about beginning the taper of asset purchases will be significant.

There have been several comments made by MPC members recently in which their position has either changed or softened. It remains to be seen whether the vote to retain the current level of purchases sees any votes against. If that were to happen, it would be a major signal to the market that the end of support for the economy is approaching.

Next week’s MPC meeting will be crucial in the Bank’s plans to both support the economy and head off inflation that is continuing to rise, but at a slower pace.

The comments that have been made have so far ignored the inflation question. They have mainly been questioning the strength of the recovery, either saying that it is sufficiently robust to stand on its own or concerned that there are too many imponderables to take the chance of needing to reverse a decision in the Autumn.

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