Philip Rush, Research Analyst at Nomura, suggests that its difficult for the market to price and BoE to deliver the rate hike. Key Quotes “The MPC continues to sound dovish and has not sought to explain why a high inflation forecast in May is needed to indicate that the market is priced appropriately. This adds to our concern that the MPC will stay dovish. Unless the market prices in a hike, the MPC is unlikely to deliver one, in our view. Difficulties in approaching a hike in this circular world mean we now see the first rate hike being delayed until February 2017. Risks to our BoE forecast remain dovish, especially with the Brexit vote ahead. Assuming the UK remains, the Fed resumes rate hikes and inflation returns to target, as we forecast, the case to hike in February 2017 should be compelling.” For more information, read our latest forex news.