Britain on verge of interest rate hike

The Bank of England appears set Thursday to hike interest rates to combat high inflation, as it eyes fallout from both Brexit and the global trade war, economists say, reports AFP from London.

Policymakers are widely expected to ramp up the British central bank’s main interest rate by a quarter-point to 0.75 percent—which would be the highest level in more than nine years.

The BoE’s nine-strong monetary policy committee (MPC) will reveal the outcome of its August gathering at 1100 GMT.

No change is anticipated in quantitative easing stimulus policy, which has been in place alongside ultra-low rates since the aftermath of the global financial crisis.

“The market is confident we are in for an August rate rise,” said Laith Khalaf, senior analyst at stockbroker Hargreaves Lansdown.

Brexit-facing Britain was the only G7 economy to experience a slowdown in 2017, the Office for National Statistics highlighted this week.

However, it also noted that growth has been more resilient than was initially expected after the Brexit referendum in 2016.

“The bank would dearly love to normalise monetary policy, if only to give itself a bit of ammunition to ward off an economic slowdown,” Khalaf added.

 

Britain on verge of interest rate hike

The Bank of England appears set Thursday to hike interest rates to combat high inflation, as it eyes fallout from both Brexit and the global trade war, economists say, reports AFP from London. Policymakers are widely expected to ramp up the British central banks main interest rate by a quarter-point to 0.75 percentwhich would be the highest level in more than nine years. The BoEs nine-strong monetary policy committee (MPC) will reveal the outcome of its August gathering at 1100 GMT. No change is anticipated in quantitative easing stimulus policy, which has been in place alongside ultra-low rates since the aftermath of the global financial crisis. The market is confident we are in for an August rate rise, said Laith Khalaf, senior analyst at stockbroker Hargreaves Lansdown. Brexit-facing Britain was the only G7 economy to experience a slowdown in 2017, the Office for National Statistics highlighted this week. However, it also noted that growth has been more resilient than was initially expected after the Brexit referendum in 2016. The bank would dearly love to normalise monetary policy, if only to give itself a bit of ammunition to ward off an economic slowdown, Khalaf added.