BoE Expected to Hold Interest Rates Stable
Later today The Bank of England (BoE) will release its first Interest Rate publication for the year. The fact that the way towards Brexit, and its outcome, are still unsure, seems to put the growth of the British economy at a sluggish pace.
Brexit is only 50 days away and this uncertainty may lead to BoE’s Monetary Policy Committee to vote to keep their benchmark borrowing rate unchanged at 0.75 percent, according to Reuters polls of economics. Experts have also said that policy makers could hold off raising rates until there is some clarity as to what will happen with Brexit.
Chief Economic Adviser to the EY Item Club, Howard Archer said, “the weakened set of January PMI’s leave little doubt that the Bank of England will remain firmly in ‘wait and see’ mode on monetary policy at February’s MPC meeting this week, and until after the Brexit situation becomes clearer.”
It remains to be seen how Brexit will play out and how this will ultimately affect the economy. If the outcome will be a no deal exit, then BoE said that “it might raise rates due to the inflationary impact of a likely slump in the value of the pound, although most economists think it would cut them to cushion the blow to the economy.”
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Everything posted herein is the Personal Opinion of the Author(s) and does not represent a statement made by TeleTrade. TeleTrade is providing this for informational purposes.
13 February 2019, 09:19 New Zealand Interest Rate Remains the Same
28 January 2019, 09:17 What is the Next Step in Brexit?
|remaining time till the new event being published|
- No-deal Brexit would be a significant shock to European economy - ECB's de Guindos
- Fed's Mester: Fed is not far behind or ahead of curve and can gather information on economy before adjusting rate policy
- U.S. homebuilder confidence improves more than expected in February
- Bank of Japan Governor Kuroda: BoJ's monetary policy not targeting FX