In opinion of Lee Sue Ann, Economist at UOB Group, the Bank of England is expected to refrain from acting on monetary policy for the time being.
Key Quotes
“The Bank of England (BoE) has placed strong emphasis on the labor market in making the case to raise interest rates if Brexit proceeds smoothly”.
“However, the concern with policymakers has also been how Brexit is panning out, and financial markets have been expecting further easing by the BoE in response to the extended Brexit uncertainty and weaker external environment”.
“We, however, continue to believe that the BoE is unlikely to act for now. Coupled with the latest unemployment figures, the solid wage growth story will likely keep the BoE comfortable in keeping interest rates on hold until the path of Brexit becomes clearer“.
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