Daily Trends Now
Daily Trends Now


Will the Bank of England raise interest rates today?

Will the Bank of England raise interest rates today?

The Bank of England's Monetary Policy Committee have voted 7-2 to maintain Bank Rate at 0.5%, the same ratio as in its last meeting. The bank's quarterly economic forecasts suggest the next increase may not happen until the latter part of this year, though. The currency was trading on a low against the dollar of $1.3499 before easing to relative levels.

Professor Peter Urwin, director of the Centre for Employment Research, said the decision to hold rates down had not been a foregone conclusion.

The Royal Institution for Chartered Surveyors said that April saw a slight decline in average prices across the United Kingdom, but but quite big falls in values in London - particularly among homes in the £500k to £1million bracket.

The widely anticipated hike could be pushed back due to a very weak first quarter of just 0,1%, suggesting the British economy has hit on a major break.

"There was value in seeing how the data unfolded over the coming months, to discern whether the softness in Q1 might persist", they said.

The decision comes despite the Bank's governor, Mark Carney, having earlier signalled that a rate rise was incoming soon. We expect an acknowledgement from Carney that economic conditions have worsened since the last meeting in March, while there is a good chance that we'll see a downward revision in the 2018 growth forecast, although this may be largely priced in. But Governor Mark Carney lowered expectations after dovish comments he gave in an interview with the BBC, referring to data that was coming in on the "softer side".

Analysts, who had estimated the USA could impose a fine of up to $12 billion, said the bank could reinstate a dividend.




The Bank of England has kept its main interest rate on hold as a run of soft economic data has made it more cautious about the outlook for Britain.

This follows disappointing GDP figures at the start of this year with growth of just 0.1%.

However, slowing consumer lending and a sluggish housing market created greater-than-usual uncertainty about consumer demand, the BoE said.

The Bank of England has elected to keep the interest rate at 0.5% despite continued speculation that a rise is imminent. Policymakers are not likely to take hikes off the table this year, as some forecasts have attached credence to.

The inflation forecasts also show that any lost economic output in the first quarter would not be recovered throughout the remainder of the year, despite expectations for the second quarter to be "commensurately stronger".

While markets had already effectively ruled out the prospect of an interest rate hike the Pound still came under fire after the Monetary Policy Committee (MPC) voted to leave policy unchanged. They no longer price in a full 25 basis point rate rise in December, according to Reuters data. In February, Mr Carney said rates might need to rise somewhat faster than markets had expected.

follow

editors' picks

May 10, 2018
Twitter to soon launch an encrypted messaging feature
Implementing E2E encryption adds another layer of privacy when it comes to communicating with people on Twitter. Twitter may gain the upper hand on WhatsApp if Facebook starts to go through the conversations.

May 09, 2018
Google Maps and Google Lens giving more personal results
In the new camera interface, users will be able to tell precisely where they are and where they need to go. Google Maps is adding a "For you" section as well.

May 08, 2018
Giroud Hails Moses' Goal Assist In Chelsea Win Against Liverpool
I think in spite of the hard season we are still alive and are fighting until the end. Hazard, however, feels Giroud is a target man that is easy to locate on the pitch.

May 08, 2018
Melania Trump to announce formal platform
Her choice was ridiculed nearly immediately, given her husband's longtime habit of calling people names on Twitter, but Mrs. From challenges facing children to the opiod epidemic, a look at First Lady Melania Trump's policy agenda.

May 05, 2018
New York Mets part ways with pitcher Harvey
He was the seventh overall draft pick in 2010, became an All-Star in 2013 and was the NL Comeback Player of the Year in 2015. Because of Harvey's $5,625,000 salary, a trade might be hard to make unless the Mets agree to send cash as part of a deal.

May 04, 2018
Brexit: Government faces 7th defeat in parliament
Former deputy prime minister Lord Heseltine and ex-ministers Lord Patten of Barnes and Lord Willetts were among 19 Tory rebels. He said: "Even the House of Lords last night rejected on a vote having another referendum".

May 03, 2018
China's Xiaomi submits HK filing, with big IPO expected
It posted a net loss of 43.9 billion yuan ($6.9 Billion) in 2017, reversing from a profit of 491.6 million yuan a year earlier. The company's financials showed 2017 revenue of RMB 114.62 billion ($18 billion), a 67.5% increase from the previous year.

May 02, 2018
Facebook accidentally rolls out feature to flag any post as 'hate speech'
As of this morning, it would appear that they do not have definitive answers to these essential questions. The "hate speech" question appeared for less than 30 minutes before disappearing by noon ET.

May 01, 2018
Stephen Curry out for Game 1 vs. Pelicans; likely for Game 2
The Golden State Warriors dominated in all aspects in their convincing game one win on Saturday night. His 15 rebounds helped the Warriors out-rebound the Pelicans 65-46, a huge disparity on the glass.

May 01, 2018
Real Madrid vs Bayern Munich
Bayern's DNA is that we always score goals , always have many chances, and we want to have that tomorrow at the Bernabeu too. The winger and his Bayern team-mates fly to Madrid on Monday vowing to upset the odds.