Carney Expected to Talk Down Rate Hike Prospects

The Bank of England is likely to revise higher its inflation outlook for the year, though Governor Mark Carney is bound to talk down expectations for a rate increase anytime soon, analysts say ahead of this week’s monetary-policy review.

What is likely to capture the market’s imagination is whether more than one person among those voting calls for a rate increase, they say. The BOE is scheduled to announce its policy decision at 12 p.m. in London on Thursday, followed by a press conference by Governor Mark Carney 30 minutes later. The central bank will leave its benchmark rate unchanged at 0.25 percent, according to all 55 economists in a Bloomberg survey.

The BOE will also release its Quarterly Inflation Report, where it will raise its 2017 inflation forecasts and lower its economists growth projections, according to analysts.

Bloomberg

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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.