Blog With Tag boe
The Bank of England left interest rates unchanged at its May meeting. Markets had largely written off any probability of an increase following the BOE Governor’s BBC interview in late April where he alluded to weaker Q1 growth and Brexit uncertainty delaying the prospect of higher interest rates. The inflation report itself provided very little in terms of guidance as to the timing of the next interest rate increase, forecast inflation was revised down slightly due to the lower than expected outturns since the last forecast round.
PegasusCapital - Mon 18th Jun
Yesterday’s FT article, which appeared on page 2 of the printed edition, highlighted the Bank of England’s concerns over interest rate complacency. It is worth noting that the BOE were given the inflation data on Friday, as this was stated by the ONS in this morning’s release and it is also likely that preliminary wage data was furnished at a similar time therefore, yesterday’s article could be viewed as more of a response to incoming data as opposed to simply being a generic argument about market complacency.
PegasusCapital - Sun 10th Sep
So, the fingers are on the triggers and we are ready, steady and all set to go with the UK about to trigger Article 50 and the US Fed set to trigger the next interest rate rise. What that could mean for both economies will clearly play itself out over the coming months and years but there are already signs of divergence in the outlook for both.
PegasusCapital - Thu 2nd Mar