REUTERS/Peter Macdiarmid
- The Bank of England hinted that it is set to hike interest rates in May, but there are signs it could change its mind.
- A rate hike in May is, in the words of bond market guru Mohamed El-Erian “far from a done deal.”
- The wording of the committee’s statement is far less explicit than that in the Bank of England’s statement in September last year, the meeting prior to its November rate hike.
- This suggests some reticence to hike on the bank’s part.
- The make up of the vote of bank’s Monetary Policy Committee also raises concerns.
LONDON — As expected, the Bank of England left interest rates on hold on Thursday, but signalled — in the eyes of most commentators and many in the markets — that a rate hike at the next meeting of its MPC is all but guaranteed.
After hiking rates for the first time since the financial crisis last November, the bank spent much of the rest of the year signalling that it will likely raise rates further in 2018. See the rest of the story at Business Insider
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See Also:
- Bank of England leaves rates unchanged at 0.5% — but signals a hike in May
- Here’s what to expect from the Bank of England on Thursday
- 4.3%: UK unemployment falls back to near record lows
SEE ALSO: The Bank of England is making a fundamental misjudgment about the British economy
