BoE meeting on interest rates

Ryan Fowler

September 15, 2016

Bank of England

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.

BoE figures – robust October for mortgage approvals

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.

 

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