During his scheduled speech in Yorkshire, BOE Chief Economist Andy Haldane reignited expectations for a relatively sooner rate-hike action by saying that partial withdrawal of accommodation from last August MPC move would be prudent.
• If policy tightened too late, this could result in a much steeper path of rate rises later on
• Considered the case for a rate rise at the MPC’s June meeting but didn’t act
• 2-reasons for not hiking yet: too few signs of higher wage growth & still some chance of a sharper than expected slowing in economy
• Hiking rates will be a sign that the economy has begun to normalize
• The world outlook is materially brighter than it has been for some time
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.