Economists not expecting Bank of England rates rise until 2019

Written by John Ashmore on 4 September 2017 in News

A BBC snap poll of economists found most do not think the Bank's Monetary Policy Committee will make any change to the rate until Brexit negotiations have finished

Cash - image credit: Fotolia

The Bank of England is not expected to raise interest rates until 2019, according to a BBC survey of leading economists.

The current rate of 0.25% is the lowest in history and has been in place since August last year, when it was cut from a previous low of 0.5%.

A BBC snap poll of economists found most do not think the Bank's Monetary Policy Committee will make any change to the rate until negotiations have finished on the UK's withdrawal from the EU.

That is despite inflation now running at 2.6%, well above the Bank's target level of 2%.

There are voices inside the Bank, including chief economist Andy Haldane, who have made the case for increasing rate - although governor Mark Carney said in a speech this June that "now is not yet the time" for a rise.

Opinion is divided on exactly when an increase will come - economists at Barclays, Santander, Morgan Stanley and Oxford Economists all told the BBC they did not expect any action until 2019 at the latest.

Others predict an increase as early as May 2018, while George Buckley of Japanese bank Nomura thinks the MPC will make a move as early as this November.

Tags

Categories

Related Articles

Banks have failed to engage with communities over branch closures, MSPs warn
3 July 2018

The Economy, Jobs and Fair Work Committee found that branch closures were hitting the most vulnerable, with MSPs warning that alternative options to face-to-face banking have not been adequate

Interview: Keith Brown on being elected SNP depute leader
21 June 2018

Exclusive interview with the SNP’s new depute leader on the Growth Commission report, indyref2 and how he interprets his role

 

Brexit and Scotland's rural economy
21 June 2018

Concern over challenges faced by rural communities have been long-running, but with Brexit on the horizon, new ones have emerged

Related Sponsored Articles

Share this page