The Bank of England is edging toward its first interest-rate increase in a decade, market expectations are rates to be raised from 0.25% to 0.50%, the decision will be announced today at 12:00 (GMT) and will be followed by a statement by Governor - Mark Carney at 1230 (GMT), where the investors will look for signs about bank's further course.
While analysis by Bloomberg Economics shows that’s far weaker than the pace seen when the BOE raised rates in the past, the odds calculate the possibility of rising today at 90.1%, which is a sure sign that such a decision will be made mentioning the long during BOE prepared the market.
The latest snapshot of the labor market from the Office for National Statistics may help to explain why the Bank of England appears to be edging toward its first interest-rate increase for a decade.
The forecasts are for one increase in 2018, but if inflation remains above the target of the bank (2%) and households continues more borrowing than saving, BOE may be forced to tighten its monetary policy faster.
Keep in mind the background of the above, we may conclude that there will be an increase by the end of the year, remains the question whether this will happen today or on 14.12?
Source: Bloomberg Pro Terminal
Trader-G.bozhidarov
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