Finance: Here comes the Bank of England …

mark carney

The Bank of England's latest decision on interest rates in less than an hour away.

  • Bank of England set to leave interest rates unchanged on Thursday at the November meeting of its Monetary Policy Committee.
  • That will mean the UK will remain with a base interest rate of 0.75%.
  • Rates are widely expected to increase further in the coming years, but the next move will almost certainly not happen until next year.
  • The decision will come at 12:00 in London (8.00 a.m. ET), and at 12.30, Governor Mark Carney will take questions.

The Bank of England will shortly announce its latest decisions on the UK's monetary policy, and is widely expected to leave interest rates on hold for another month.

At 12.00 p.m. in London (8.00 a.m. ET) the bank will announce its latest decisions, and its nine-member Monetary Policy Committee is expected to vote unanimously to leave rates on hold at 0.75%, but could telegraph the path for future policy decisions, including when it might next increase its base rate of interest.

Any outcome other than no change from the meeting would be a significant surprise to markets.

Rates are widely expected to increase further in the coming years, but the timing of any rate hikes remains unclear, and the next move in rates will almost certainly not happen until next year. Any moves are also believed to be dependent on the progress of Brexit.

Alongside the decision on Thursday, the bank will release its quarterly Inflation Report, which provides an update of its forecasts for overall economic growth and inflation. Governor Mark Carney will also hold a press conference following the announcement of the decision.

Britain faces an uncertain economic future as Brexit looms. The British government remains adamant that it will strike a deal, and says one is 95% complete, but the exact shape of that deal isn't entirely clear.

Should Britain fall out of the EU without a deal, the Bank of England would likely be forced into extraordinary measures — similar to those taken after the initial Brexit vote — as a means of protecting the UK from any negative shocked.

This post will be updated once the decision is announced.

Source: BUSINESS INSIDER

Leave a Reply

Your email address will not be published. Required fields are marked *