BoE falls into holding pattern, after inflation creeps higher
London — The Bank of England will fall into a central banking holding pattern on Thursday after November saw the first interest-rate hike in a decade. With no policy move expected by economists, the spotlight will be on any comment on the market pricing for two more rate increases over the next three years. Governor Mark Carney and most fellow policy makers haven’t disputed that outlook, which would lift the benchmark to 1% from 0.5%. The monetary policy committee (MPC) may stick to that line as it waits for its decision in February, when officials will unveil new forecasts and, importantly, their annual review of the supply potential of the economy. The bank’s view on potential growth proved crucial for the November increase. Carney said the economy’s "speed limit" had been reduced, meaning inflation pressure could be generated even when expansion was slower. The BOE is one of a host of central banks with policy decisions this week. Late on Wednesday, the US Federal Reserve raised ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.