BoE to remain on hold for the foreseeable future – Wells Fargo
|Next Thursday, the Bank of England will announce its decision on monetary policy. No change in rates is expected, particularly after the results of the general election in the United Kingdom. According to analysts at Wells Fargo, the central bank will remain on hold for the foreseeable future.
Key Quotes:
“The Bank of England (BoE) announces its latest monetary policy decision next week and is widely expected to hold its bank rate steady at 0.75%. In its November announcement, the BoE held rates steady but two officials unexpectedly voted for a rate cut. The committee’s comments following the announcement suggest it is split on the next monetary policy action.”
“Price pressures eased in October, as U.K.’s headline CPI figure rose just 1.5% year-over-year, dipping to a near three-year low, while core CPI inflation held steady at 1.7% year-over-year, still below the central bank’s 2% target. Meanwhile, U.K. GDP stagnated in October, suggesting a slow start to the fourth quarter. Given the soft inflation and growth figures, combined with some uncertainties on longer-term E.U.-U.K. trade talks now that the Conservative party secured a majority in Parliament, we expect the BoE to remain on hold for the foreseeable future.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.