"It's all but guaranteed that the Bank of England will hold interest rates at 4% at its meeting on Thursday. The committee will stick to its gradual and cautious guidance, as it continues to try to balance rising inflation with a weakening labour market."
"The late Budget will likely also encourage the MPC to wait until December at least before considering another cut. We expect little change to the MPC's guidance from August, given the hawkish dataflow and MPC members' comments suggest little reason or desire to change their position from early August."
The Monetary Policy Committee is expected to hold the base interest rate at 4% at its upcoming meeting because of weak economic growth and inflationary concerns. The committee will likely maintain gradual, cautious guidance while balancing rising inflation against a weakening labour market. Planned rate cuts may be delayed through November and December, which could keep the base rate in place until February. The late Budget and hawkish economic data reduce the incentive for immediate easing, worsening prospects for lenders and borrowers by extending a period of elevated borrowing costs.
Read at London Business News | Londonlovesbusiness.com
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