Analysts at Westpac point out that the Bank of England left the Bank rate at 0.75% at its September policy meeting and maintained its very modest tightening bias, reiterating that future increases are likely to be “at a gradual pace and to a limited extent”.
“Since the September policy decision, there have been mixed developments. Economic activity is continuing to expand at a moderate pace and unemployment remains low. However, inflation has eased back more than expected, and the slow pace of Brexit negotiations continues to cloud the outlook.”
“Against this backdrop, we expect the BOE to remain on hold in November. The accompanying statement is likely to retain a very gradual tightening bias from September, but more weight may be given to uncertainties around the economic outlook.”