BoE expected to delay rates rise
Economists predict split in monetary policy committee ranks will not deepen when central bank announces its decision on Thursday
"Not yet" is likely to be the main message this week from Bank of England (BoE) officials pondering when to start signalling an interest rate hike after a sharp slowdown rekindling doubt about Britain’s economy ahead of Brexit. Most BoE rate-setters, who were wrong-footed by the resilience of Britain’s consumers in 2016 following the EU referendum shock, want more time to see how the economy copes before considering a change in record-low rates. All economists in a Reuters poll predicted there would be no deepening of the split in the ranks of the monetary policy committee (MPC) when it announces its interest rate decision on Thursday. Increasing inflation, fuelled by rising energy costs and the pound’s post-Brexit vote plunge, has strained the BoE consensus and prompted some investors to speculate a first rate hike in nearly a decade might come sooner than expected. Michael Saunders, who left Citi to join the MPC in August, hinted in April he might side with US academic Kristin For...
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