9 Jul 2014
BoE not in an immediate hurry to raise rates - Bill Hubard
FXStreet (Łódź) - Bill Hubard, Chief Economist at Markets.com, suggests that not until the release of the BoE August Inflation Report should we get more information on whether rate increases in the UK could come as early as November this year.
Key quotes
"Overall, with slack in the economy likely having narrowed further of late, the time to start raising rates has likely drawn a little closer."
"Yet, while the BoE’s primary focus is the medium-term inflation outlook, the more benign near-term prospects may provide a more comfortable backdrop against which to leave rates ‘on hold’ for some members."
"And with none of the BoE ostensibly being in an immediate hurry to raise rates, the August Inflation Report next month may provide a better vehicle through which to assess the need for rate rises."
"Indeed, signs of imminent votes for rate rises at the August meeting may be required to justify the market pricing in almost a full 25 bps rate rise by the BoE by their November meeting."
Key quotes
"Overall, with slack in the economy likely having narrowed further of late, the time to start raising rates has likely drawn a little closer."
"Yet, while the BoE’s primary focus is the medium-term inflation outlook, the more benign near-term prospects may provide a more comfortable backdrop against which to leave rates ‘on hold’ for some members."
"And with none of the BoE ostensibly being in an immediate hurry to raise rates, the August Inflation Report next month may provide a better vehicle through which to assess the need for rate rises."
"Indeed, signs of imminent votes for rate rises at the August meeting may be required to justify the market pricing in almost a full 25 bps rate rise by the BoE by their November meeting."