Later today The Bank of England (BoE) will release its first Interest Rate publication for the year. The fact that the way towards Brexit, and its outcome, are still unsure, seems to put the growth of the British economy at a sluggish pace.
Brexit is only 50 days away and this uncertainty may lead to BoE’s Monetary Policy Committee to vote to keep their benchmark borrowing rate unchanged at 0.75 percent, according to Reuters polls of economics. Experts have also said that policy makers could hold off raising rates until there is some clarity as to what will happen with Brexit.
Chief Economic Adviser to the EY Item Club, Howard Archer said, “the weakened set of January PMI’s leave little doubt that the Bank of England will remain firmly in ‘wait and see’ mode on monetary policy at February’s MPC meeting this week, and until after the Brexit situation becomes clearer.”
It remains to be seen how Brexit will play out and how this will ultimately affect the economy. If the outcome will be a no deal exit, then BoE said that “it might raise rates due to the inflationary impact of a likely slump in the value of the pound, although most economists think it would cut them to cushion the blow to the economy.”
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.