BOE Wait-and-See Approach to Win Out at Next Week's Meeting
Dow Jones
Sep 08
1428 GMT - The Bank of England is set to keep its policy rate on hold at 3.75% next week, with guidance unchanged amid a growing schism between policymakers who want to act and those that prefer to 'wait-and-see', BNP Paribas's Dani Stoilova and Katherine Yoon say in a note. They now believe the BOE will hike in November, rather than September, coming after Andy Burnham's first budget and alongside refreshed macroeconomic projections. "The U.K economy has shown remarkable resilience, and the energy-price shock has been sufficiently persistent for second-round effects to build over time and justify a rate hike," the economists say. But that will mark a single "insurance" hike, given policymakers' recent argument that additional tightening needn't start a new hiking cycle.
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