UK edging towards interest rate hike as hawks flex muscle
The Bank of England will announce its latest interest rate decision this week amid speculation that there will be a split vote among officials for the first time this year.
Rates are expected to remain at 0.5% for now, but recent remarks from bank officials have fuelled expectations that there could now be a hike before the end of 2015.
Economists had previously been expecting an increase in rates in the middle of 2016 but Bank governor Mark Carney said in a speech that a decision about a rise would "come into sharper relief around the turn of this year".
Latest projections will be closely scrutinised for clues about whether the Monetary Policy Committee may now be considering a rates hike this year.
The bank's last inflation report in May had seen it slash its growth forecast for this year from 2.9% to 2.5% after a weak first quarter.
But new figures showed gross domestic product had bounced back with expansion of 0.7% in the second quarter - though there remain concerns about manufacturing, with exports held back by the strength of the pound.