Bank of England gives the market an Interest Rate reality check
Brexit uncertainty will continue to weigh heavily on future UK growth and wage inflation. This is today’s diplomatic message to the markets from the Bank of England after the Monetary Policy Committee voted 6-2 in favour of keeping Interest Rates on hold at 0.25%, spearheaded by Governor Carney.
On balance, this shouldn’t come as a surprise to the market as the case for a rate hike is still relatively weak, with GDP forecasts slashed by both the IMF and now the Bank of England, Sterling bulls’ hopes of a rate rise have taken a heavy blow for the time being. As consumers continue to feel the pinch from inflated prices, together with a revised forecast of lower wages, Brexit clarity can’t come soon enough for all concerned.
Pound Sterling Slammed, Economic Growth Forecasts Cut, Brexit Risks Seen Growing, 6-2 Vote for Rates to Remain Unchanged
Anthony Kurukgy quoted in Pound Sterling Live