2014.04.2315:41:00UTC+00Boe First Rate Hike Likely in Q1-2015

Quotes from Standard Chartered:

- As the economy approaches its pre-crisis level of activity, the BoE's MPC remains highly uncertain about how close the economy is to eliminating slack. This assessment is key to the MPC's decision on when to start the rate-tightening cycle.

- Wages have started to accelerate, which will boost cost pressures unless productivity growth keeps pace - though there are signs that productivity is picking up after years of stagnation.

- For now, near-term inflationary pressures have eased further, with CPI inflation falling to 1.6% in March and inflation expectations declining. But we continue to expect a rate hike in Q1-2015, by which time the unemployment rate is likely to be close to 6% and medium-term inflation concerns are likely to re-emerge.