Bank Of England To Keep Rates Steady, Despite Brexit Delay

www.oann.com | 2/7/2019 | Staff
rubydrummer (Posted by) Level 3
LONDON (Reuters) – The Bank of England looks set to leave interest rates on hold on Thursday and keep its options open for later in the year when it announces its first policy decision since the postponement of Britain’s departure from the European Union.

Almost no economists polled by Reuters expect the BoE to raise rates from 0.75 percent until Britain has left the EU.

Month - Prime - Minister - Theresa - May

Last month, Prime Minister Theresa May secured a new Brexit deadline of Oct. 31 after she failed to get parliament to back her deal in time for the original March 29 departure date.

In some ways, Britain’s economy looks ready for only its third interest rate hike since the global financial crisis.

Unemployment - Wages - Pace - Years - Spending

Unemployment is at a 44-year low, wages are growing at the fastest pace in 10 years and spending by consumers has remained solid despite the Brexit uncertainty.

But there are reasons for caution, including the continued possibility that May could step down over the coming months, triggering a Conservative Party leadership contest, a national election or even a second Brexit referendum.

BoE - Forecasts - Hint - Rates - Parliament

With the BoE unlikely to move now, its updated economic forecasts will be watched for any hint that it would consider raising rates before parliament agrees a Brexit deal.

Those forecasts are likely to show inflation will soon overshoot the central bank’s 2 percent target, a signal from Governor Mark Carney and his fellow policymakers that investors...
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