Analysts at TD Securities point out that today the Bank of England’s MPC meets to set policy and they expect a relatively uneventful unanimous decision to keep policy on hold, with few changes to the forecasts.
Key Quotes
“Stronger government spending should provide an offset to a weaker global backdrop, and the move in oil prices since November should contribute slightly to inflation at Years 2 and 3, possibly leaving Year 3 inflation at 2.1% y/y.”
“Brexit uncertainty leaves the MPC in the back seat for now – we don’t expect a BoE hike until the Brexit air clears. Theresa May heads to Brussels to meet EU leaders in hopes of finding a breakthrough on the Withdrawal Agreement.”
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