Wait...
  1. Home >
  2. Export Import News >
  3. Economy News >
  4. Bank of England to keep rates steady, despite Brexit delay >
  5. Bank of England to keep rates steady, despite Brexit delay

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

Bank of England to keep rates steady, despite Brexit delay.


Date: 02-05-2019
Subject: Bank of England to keep rates steady, despite Brexit delay
The Bank of England looks set to leave interest rates on hold on Thursday and keep its options open for later in the year when it announces its first policy decision since the postponement of Britain's departure from the European Union.

Almost no economists polled by Reuters expect the BoE to raise rates from 0.75 percent until Britain has left the EU.

Last month, Prime Minister Theresa May secured a new Brexit deadline of Oct. 31 after she failed to get parliament to back her deal in time for the original March 29 departure date.

In some ways, Britain's economy looks ready for only its third interest rate hike since the global financial crisis.

Unemployment is at a 44-year low, wages are growing at the fastest pace in 10 years and spending by consumers has remained solid despite the Brexit uncertainty.

But there are reasons for caution, including the continued possibility that May could step down over the coming months, triggering a Conservative Party leadership contest, a national election or even a second Brexit referendum.

With the BoE unlikely to move now, its updated economic forecasts will be watched for any hint that it would consider raising rates before parliament agrees a Brexit deal.

Those forecasts are likely to show inflation will soon overshoot the central bank's 2 percent target, a signal from Governor Mark Carney and his fellow policymakers that investors are too relaxed about the prospect of a rate hike.

"Heading in to this week's BoE meeting we see more scope for a hawkish surprise than a dovish one," Bank of America Merrill Lynch interest rates strategist Sebastien Cross said in a note to clients.

Unlike the European Central Bank and the U.S. Federal Reserve, the BoE sees a case for ongoing policy tightening and limited and gradual rate rises. But financial markets only price in a 35 percent chance of a move this year, largely due to the Brexit uncertainty.

Britain, the world's fifth-largest economy, has seen growth stumble since the referendum decision in June 2016 to leave the EU, well before a global slowdown began last year.

Three months ago, the BoE downgraded its British economic growth forecast for 2019 to 1.2 percent, which would be the weakest since 2009. Some analysts now think that looks slightly too gloomy, despite a string of downbeat business surveys.

In March the BoE's Monetary Policy Committee said it was hard to judge if soft sentiment pointed to weakness ahead, or reflected temporary Brexit nerves like after the referendum.

The effect of Brexit uncertainty has been felt most on business investment, which contracted every quarter last year for the first time since 2009.

Carney warned last month that business uncertainty was "through the roof" and this was hurting productivity - something that also has potentially inflationary consequences.

Source: moneycontrol.com


Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 10-12-2019
Notification No. 89/2019 – Customs (N.T.)
Appointing the date for enforcing section 88 (b) of the Finance (No. 2) Act, 2019 to bring out the changes in the First Schedule to the Customs Tariff Act, 1975.

Date: 10-12-2019
NOTIFICATION No. 45/2019-Customs (ADD)
Seeks to impose anti-dumping duty on imports of Clear float glass originating in or exported from Pakistan, Saudi Arabia and UAE in pursuance of Final findings of Designated Authority in sunset review of notification No. 48/2014-Customs (ADD) dated 11.12.2014

Date: 06-12-2019
Notification No. 34/2015-2020
Corrigendum to Notification No. 31/2015-2020 dated 13th November, 2019.

Date: 05-12-2019
A.P. (DIR Series) Circular No.11
Exim Bank's Government of India supported Line of Credit (LOC) of USD 500 million to the Government of Bangladesh

Date: 05-12-2019
Notification No.88/2019 - Customs (N.T.)
Exchange Rates Notification No.88/2019-Customs (NT) dated 5.12.2019

Date: 04-12-2019
Notification No. 06/2019 Central Excise (N.T.)
Seeks to extend SVLDRS, 2019 to the mentioned enactments

Date: 02-12-2019
Trade Notice No. 40/2019-20
Imports of Onions

Date: 02-12-2019
Notification No. 33/2015-2020
Amendment in Policy condition No.2 (iii) to Chapter 95 of ITC (HS), 2017- Schedule -1 (Import Policy)

Date: 02-12-2019
Notification No. 87/2019- Customs (N.T.)
Notification of Vizinjham International Seaport and Muthalapozhi u/s 7(d) of the Customs Act for unloading and loading of boulders for breakwater construction.

Date: 29-11-2019
Circular No. 40/2019-Customs
Auto Out of Charge under Express Cargo Clearance System (ECCS) - reg.



Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001