BOE Won't Budge on Rates Until Brexit Is Done, Niesr Says
- Sees U.K. inflation peaking at 3.4% while growth slows
- Bank of England announces rate decision, forecasts this week
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The Bank of England probably won’t make any policy moves before Brexit negotiations are concluded, according to the National Institute of Economic and Social Research.
“We assume that interest rates remain unchanged until we exit the European Union,” Simon Kirby, head of macroeconomic modeling and forecasting at Niesr, told reporters Tuesday. “If the chance of a transitional deal does begin to materialize, it might well be that the Bank of England brings forward the point at which it raises interest rates, but at the moment, that doesn’t appear to be on the cards.”