Oil’s Fall, Slow Wage Growth to Weigh on Bank of England Rate Vote

The Bank of England looks likely to signal another delay in raising interest rates on Thursday thanks to a renewed oil price slump, sputtering wage growth and the approach of an unsettling vote on Britain’s European Union membership.

Amid signs of a weakening in Britain’s economic recovery and doubts about how hard China’s slowdown will hit the world economy, some economists are pushing their forecasts for a first BoE rate hike to as far back as November.

It has already been almost seven years since the Bank cut borrowing costs to 0.5 percent as the financial crisis tipped Britain into a deep recession.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.