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Inflation-wary Bank of England set to keep rates on hold
- On Feb. 5, the Bank of England will hold its decision and publish the Monetary Policy Report at 1200 GMT, followed by a press conference.
- Uncertainty over how fast inflation will fall to the 2% target and whether labour-market weakness signals a deeper slowdown drive cautiousness, as the Bank of England considers recent data and pay settlements.
- Traders are pricing almost no chance of a cut this week as GDP rose 0.3% in November and the composite purchasing managers index hit a 21-month high, reversing mid-January market expectations for two quarter-point cuts.
- Most economists forecast a 7-2 vote to hold rates, with external members Alan Taylor and Swati Dhingra dissenting and some forecasters seeing Deputy Governor Dave Ramsden join dissenters, reflecting tight MPC margins.
- Reuters notes the BoE will likely sound vague about future cuts as Britain faces the highest borrowing costs in the G7 despite six rate cuts and 3.4% December inflation.
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Bank of England expected to hold interest rates at 3.75 per cent as labour market weakens
The Bank of England is expected to hold interest rates at 3.75 per cent when it announces its latest policy decision on Thursday as officials weigh conflicting signals from across the UK economy.Investors will be watching closely for any guidance on the future direction of monetary policy, with the central bank widely anticipated to signal that further rate reductions remain possible in the months ahead.Recent data have highlighted a complex bac…
·London, United Kingdom
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Coverage Details
Total News Sources18
Leaning Left1Leaning Right3Center1Last UpdatedBias Distribution60% Right
Bias Distribution
- 60% of the sources lean Right
60% Right
L 20%
C 20%
R 60%
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