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BOE remains boxed in by Brexit as no-deal fears eclipse wage gains

The Monetary Policy Committee, which has said that the UK needs limited and gradual hikes, will nonetheless vote unanimously to keep interest rates unchanged at 0.75% next week

Bloomberg 

Anti-brexit party, brexit, renew, UK, Britain, Europe, EU, european unionGina Miller, brexit referendum

officials are stuck in a rut, as the UK’s increasingly chaotic political backdrop looks set to drown out any talk of higher interest rates.

The Monetary Policy Committee, which has said that the UK needs limited and gradual hikes, will nonetheless vote unanimously to keep interest rates unchanged at 0.75 per cent next week, according to the majority of economists in a Bloomberg survey. Officials will also lower both their growth and inflation forecasts for 2019.

With less than two months until the UK leaves the and no clarity on what form the exit will take, Governor Mark Carney’s press conference on February 7 will likely be dominated by The chances of a no-deal outcome — which the BOE have warned could severely damage the economy — increased last week after Prime Minister promised to go back to to seek concessions from an uncompromising

“The MPC will remain on hold, primarily as they appear to have little option at this stage given the uncertainty over Brexit,” said Cathal Kennedy, an economist at the

As well as keeping their hands tied on policy, is also complicating the BOE’s forecasting.

First Published: Sun, February 03 2019. 00:36 IST
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