This week’s meeting of the Bank of England’s rate-setting Monetary Policy Committee will almost certainly vote for rates to remain unchanged. The latest data that has been released for output, employment and inflation shows that although progress has been made, there is no incentive for a cut since rates appear to be sufficiently restrictive to see inflation fall, but not drive the economy into a recession.Andrew Bailey and his colleagues from the Bank, who make up the permanent members of the Committee, will feel that one or possibly two further “pauses” will see inflation reach their target of 2%.Fiscal policy changes are going to provide sufficient stimulus for the economy to see a period of growth, and with rates sufficiently restrictive to put downward pressure on inflation, there will be no need for a change in monetary policy.It is expected that the four independent members of the committee, who have become irrelevant over the past few months, will begin to feel that a further hike is no longer necessary since any legacy of hikes that have taken place in the past will have faded.Last week saw the release of PMI data which showed that output continues to improve, particularly in the services sector, which is the main driver of GDP.Beyond Currency Market Commentary:Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.