Economics
BOE's Unanimous Rate Hike Has Economists Projecting Two in 2019
- Majority in previous survey saw one quarter-point increase
- Risk of a cliff-edge Brexit is major hurdle to 2019 outlook
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The Bank of England’s unanimous decision to raise interest rates this month has led economists to predict an additional two hikes next year.
A survey of 31 economists by Bloomberg shows the majority expect the benchmark rate to reach 1.25 percent by the end of 2019, a quarter-point higher than in the July survey. The first move from the current 0.75 percent is forecast for the second quarter -- after the U.K.’s planned exit from the European Union -- suggesting that concerns a harsh Brexit will prevent the central bank from continuing its “limited and gradual” tightening path may be overdone.