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 Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam