Economics
Why the Bank of England Will Probably Raise Rates, and Why It Might Not
- Market pricing in a 90% chance of a 25 basis-point increase
- Brexit, trade wars, subdued growth could yet put panel off
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There are still plenty of reasons why Bank of England Governor Mark Carney and his colleagues might hold fire on an interest-rate increase this week.
Investors are betting there’s a 90 percent chance of a quarter-point hike to 0.75 percent on Thursday, which would be only the second increase since the financial crisis. That’s despite Brexit weighing on the U.K., and the economy is already lagging behind its peers.