The Bank of England Has Nowhere to Go on Rates

The Bank of England will probably keep its key rate at a record low on Thursday, where it’s been for seven years, as the threat of a British exit from the European Union takes center stage.

These charts show how the U.K.’s economic outlook has evolved since the Monetary Policy Committee’s February meeting. The central bank will publish its March interest-rate decision at noon in London alongside the minutes of its gathering.

The good news is that global market jitters have abated and wage growth has ticked up. Yet investors also woke to the risks stemming from the EU referendum, sending the pound to the lowest since 2009 against the dollar, and Governor Mark Carney told lawmakers last month that officials have “considerable room” to ease policy if needed.


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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.