Bank of England to Hold Interest Rates as Caution Reigns

The Bank of England will almost certainly leave interest rates on hold on Thursday and wait for more evidence that inflation is under control, despite mounting concerns about the UK labor market.

Markets put the chance of a quarter point rate cut at less than 1% and only one of 32 economists surveyed expects a reduction. The rest believe rates will remain unchanged at 3.75%, a three year low, with the majority anticipating a 7-2 vote split. External members of the Monetary Policy Committee Alan Taylor and Swati Dhingra are expected to be the doves. The decision will be announced at 12 p.m. in London.