The results of the latest Reuters poll of economists show that none of them see the Bank of England (BOE) hiking the interest rates on Thursday while some are raising doubts over an August rate hike.
Key Findings:
BNP Paribas economist Luigi Speranza noted: “The Monetary Policy Committee will be wary of providing any firm guidance over the likely timing of the next hike as it won’t want to tie its hands.”
Goldman Sachs currency strategists said sterling – which is already near a 2018 low – continued to price in too high a chance of an August move.
Many economists expect the central bank to keep hedging its bets. Since its last meeting, inflation has fallen to a one-year low of 2.4 percent and April industrial output and construction data were strikingly weak.
Barclays economists Fabrice Montagne and Sreekala Kochugovindan said, “August would be too much of a gamble and (we) see November as the next best opportunity for a hike, assuming data strengthens more than we expect and that Brexit remains free of major disruption.”
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