Analysts at ING suggest that with the Bank of England set to keep rates on hold today, all the action will be in its statement.
Key Quotes
“Skill shortages in certain parts of the economy have seen pay rise at the fastest rates since the crisis. While some momentum has dissipated in the most recent figures, we don’t expect the Bank to significantly change its view that wage growth will keep performing strongly. This means the Bank will likely keep the door ajar to further rate hikes, so the second thing to watch will be the vote count – some headlines have hinted that one or two policymakers may be prepared to vote for an immediate hike at this meeting.”
“But for the committee as a whole, the Brexit delay is likely to reaffirm the concerns expressed in the substantial growth forecast downgrade policymakers made back in February. Investment looks set to stay under pressure, and we suspect this will stop the Bank from hiking rates in 2019.”
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