Bank of England to Hold Rates but Energy Shock Stirs Talk of a Hike
Markets see the Bank of England holding rates, but a 20% jump in gas and crude prices is lifting expectations of a later hike, Reuters said.
- On Thursday, the Bank of England is expected to keep interest rates on hold at 3.75%, though investors are watching for any hint that surging energy prices might force it to follow the U.S. Federal Reserve's recent borrowing cost increase.
- British natural gas and Brent crude futures have surged 20% this month, threatening to push inflation further above the Bank's 2% target, which the central bank has missed in all but three months of the last five years.
- Financial data shows the average five-year fixed mortgage rate at 5.83%, while most economists polled by Reuters last week expected the Bank to maintain the 3.75% rate through year-end.
- The Telegraph reported Tuesday that the Bank may cease sales of 20-year and 30-year gilts, a shift that could offer fiscal room for Finance Minister John Healey ahead of his October 28 budget statement.
- Financial markets currently point to an 80% chance of a rate hike in November, with analysts from investment banking firm Evercore ISI stating that "Nowhere is the gap between market pricing and policymaker expectations more stark than in the UK.
13 Articles
13 Articles
Interest rates are set to be held amid bond pressure
The Bank of England is expected to leave Interest rates unchanged even as bond traders raised expectations for upcoming hikes and the Federal Reserve opted to tighten monetary policy in the US. The Bank’s nine-member Monetary Policy Committee is expected to back leaving interest rates at 3.75 per cent although policymakers are set to be [...]
Winnipeg Free Press
The Seattle TimesBank of England expected to keep interest rates unchanged despite rising inflation
LONDON (AP) — The Bank of England is expected to keep interest rates unchanged Thursday even though inflation in the United Kingdom has risen to a five-month high as the fallout from the Iran war continues to ratchet up fuel prices.
Bank of England to hold rates but energy shock stirs talk of a hike
By Andy Bruce MANCHESTER, England, Sept 17 (Reuters) - The Bank of England looks set to keep interest rates on hold on Thursday but investors are watching for any hint that surging energy prices could force it to follow the example of the U.S. Federal ...
United Kingdom: the Bank of England Faces a Difficult Choice - ActionForex
Headline inflation increased from 2.6% to 2.9% year-on-year. Core inflation remained at 2.6%, above the 2.5% forecast. Services inflation held at 3.4%, instead of rising to 3.5%. Wage growth slowed, while unemployment benefit claims increased by 27,800. The Bank of England is expected to leave interest rates unchanged tomorrow. Energy pushes headline inflation higher UK […]
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
