BOE to hold rates at its record low of 0.25% until 2019 – Reuters poll

According to the latest Reuters poll, the BOE is seen holding interest rates at 0.25% until 2019.

Key findings from the survey:

“The medians in the poll of economists said the Monetary Policy Committee would hold Bank Rate at its record low of 0.25 percent until 2019. Those forecasters gave, on average, a near one-in-three chance of rates rising before this year is out.

Financial markets have fully priced in a 25 basis point hike by May 2018 but the poll said rates will not rise until 2019, ending that year at 0.75 percent.

Only two of the 80 economists polled in the past few days expect the MPC to tighten policy when it meets on Aug. 3, but they are joined by four others who expect an increase by end-December.

The chances of a hike in August are only one-in-five, according the poll.

The BoE expects wages to rise 2 percent this year before picking up in 2018 and 2019.

But that will lag price rises as inflation will average 2.7 percent this year, 2.6 percent next and 2.2 percent in 2019, the Reuters poll found.“

 

 

 

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