BoE meeting on interest rates
The Bank of England is meeting today to determine if interest rates should be cut even further following a 0.25% reduction last month.
It is widely anticipated that the Bank’s Monetary Policy Committee will hold rates at 0.25% – however a further cut is expected by November.
A recently released Reuters poll found that a majority of economists believe the rate will be cut to just 0.1% in two month’s time.
But poll found that they are less pessimistic about the impact of Brexit on the economy prediciting a 35% chance of recession over the next year. That number stood at 60% back in July.
Today’s meeting follows a week of strong economic data with inflation remaining stable at 0.6% and the unemployment level standing at 4.9%.
With rates already at a historic low of 0.25% and a £60bn bond buying scheme in place it seems unlikely that any changes will be made today.
The MPC will be releasing its minutes at 12pm.