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.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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.