BoE Facing Brexit Balancing Task

The Bank of England will probably try on Thursday to avoid adding to speculation about a first interest rate hike in nearly a decade, even as it acknowledges the resilience of Britain’s economy since last year’s Brexit vote shock.

After Britain surprisingly outgrew the world’s other big rich economies last year, the BoE is expected to raise its 2017 growth forecast for the second time in three months, according to a Reuters poll of economists.

A fresh growth upgrade might encourage some investors to bet on a first rate hike since 2007 as well as invite further criticism of warnings before June’s referendum by Governor Mark Carney and his fellow rate-setters that a vote to leave the bloc would deliver a quick hit to the economy.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
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 Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. 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.