BOE Growth Downgrade Is Just One Reason for No Rate Hike: ChartBy
The Bank of England will probably downgrade its forecast for 2017 growth on Thursday as it also announces that interest rates will stay at a record-low 0.25 percent for now. A hawkish shift at the bank in June briefly sparked speculation of a 2017 hike, but that petered out as the inflation rate dropped, price expectations stabilized and wage growth stayed weak. Markets don’t have a rate increase fully priced in for another year, while economists see no move until 2019.
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— With assistance by Jill Ward, and Harumi Ichikura