Following the better than expected UK PMI.......>

BOE: Following the better than expected UK PMI data, MNI PINCH shows that the

market is now pricing a 68% chance of a cut at next week's meeting - down from

77% prior to the release.

- While we would not rule out a cut, if the Bank's own Decision Maker Panel and

Agents' Surveys both show the same degree of post-election bounce, there may not

be enough justification in the data for some members of the MPC to vote for a

cut at this point. Tenreyro said that she wanted to see further weakness in the

data to vote for a cut, and this may not be enough for any of the internal

members of the MPC to shift their view to looking for a cut. We still expect

Saunders and Haskel to continue to vote for a cut with Vlieghe likely to join

them.