Economists Don’t See BoE Hike Next Month

The Bank of England is not now expected to ease policy until early 2017, according to economists in a Reuters poll who almost unanimously said staying in the European Union would be the best for the UK’s long-term trading prospects.

Britain voted to leave the EU on June 23 and while the economy has so far fared better than expected, sterling has collapsed to levels not seen in over three decades.

That is likely to push the Bank to ramp up its inflation forecasts when it publishes its quarterly review on Nov. 3 although the BoE typically views currency-driven overshoots in inflation as temporary and tries to look beyond them.


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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.