In an interview with Bloomberg TV earlier today, HSBC’s global chief economist, Janet Henry, noted that she doesn’t expect the Bank of England (BOE) to hike interest rates in the coming years.
Key Quotes:
“Don’t expect a rate hike this year, and next year also.
Assuming a stable currency, inflation should be coming down quite quickly.
And also still coming off weak Q1 data, jury still out if it is weather-related.
But if labor market strengthens and upside surprises on wages, we could be wrong.
The global economy has been stronger than expected.
The first-rate raise last year was justified.
The only reason why BOE would want to tighten is if labor market strengthens and if it is reflected in the wages data.
But there’s been a loss of momentum on wages data recently.
June is looking less likely for any breakthrough in Brexit talks.
As EU has a “busy schedule” with Greece, Italy, European integration.”
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