Bank of England Expected to Keep Interest Rates Unchanged Despite Rising Inflation
- On Thursday, the Bank of England is expected to keep interest rates on hold at 3.75%, though investors are watching for any hint that surging energy prices might force it to follow the U.S. Federal Reserve's recent borrowing cost increase.
- British natural gas and Brent crude futures have surged 20% this month, threatening to push inflation further above the Bank's 2% target, which the central bank has missed in all but three months of the last five years.
- Financial data shows the average five-year fixed mortgage rate at 5.83%, while most economists polled by Reuters last week expected the Bank to maintain the 3.75% rate through year-end.
- The Telegraph reported Tuesday that the Bank may cease sales of 20-year and 30-year gilts, a shift that could offer fiscal room for Finance Minister John Healey ahead of his October 28 budget statement.
- Financial markets currently point to an 80% chance of a rate hike in November, with analysts from investment banking firm Evercore ISI stating that "Nowhere is the gap between market pricing and policymaker expectations more stark than in the UK.
40 Articles
40 Articles
Bank of England expected to hold rates today
The Bank of England looks set to keep interest rates on hold today but investors are watching for any hint that surging energy prices could force it to follow the example of the US Federal Reserve which raised borrowing costs a day earlier.
Bank of England expected to keep interest rates unchanged despite risi
LONDON (AP) — The Bank of England is expected to keep interest rates unchanged Thursday even though inflation in the United Kingdom has risen to a five-month high as the fallout from the Iran war continues to
Interest rates are set to be held amid bond pressure
The Bank of England is expected to leave Interest rates unchanged even as bond traders raised expectations for upcoming hikes and the Federal Reserve opted to tighten monetary policy in the US. The Bank’s nine-member Monetary Policy Committee is expected to back leaving interest rates at 3.75 per cent although policymakers are set to be [...]
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