renegadebusdallas.com
renegadebusdallas.com May 24, 2018


Bank of England Puts Off Interest Rate Rise

13 May 2018, 02:35 | Clyde Nash

'The unreliable boyfriend returns': Bank of England leaves rates on hold in major u-turn

The Bank of England is set to hold interest rates at 0.5% on Thursday as a sharp slowdown in economic growth is expected to put plans for a rise on the back burner

The bank's Monetary Policy Committee voted 7-2 to keep the main interest rate at 0.5 percent, a decision that seems swayed by weak economic data in recent days.

The Bank's decision - which was outlined in its quarterly inflation report - will come as no surprise to the City, which expected Threadneedle Street to ditch plans for tighter policy this month in the light of first quarter growth of 0.1%, a faster-than-expected fall in inflation and evidence that consumers were cutting back on spending. Britain's economy grew more slowly than most of its peers previous year, after a Brexit-driven jump in inflation hit consumer spending power and some businesses delayed long-term investment.

Bank of England Governor Mark Carney said on Thursday that interest rates are likely to rise "over the course of the next year", speaking shortly after the central bank kept borrowing costs on hold in May.

Media captionWhat exactly is the Bank of England interest rate?

CPI Inflation now sits at 2.3% and earlier predictions of solid economic growth through this year had led many to expect the Bank to vote to increase the base rate from 0.5%, where it has been for much of the past 8 years, bar a dip to 0.25% during 2017. "With rates still rooted at emergency levels, this is one of the challenges faced by the Bank and how it chooses to deal with this will be key to the success of the United Kingdom economy in coming years". Accordingly, the Bank has trimmed its full year growth forecast (issued in February) down from 1.8% to 1.4%.

The four external members are appointed to bring thinking and expertise from outside the Bank to the meetings.

In Malaysia world's oldest government leader sworn in
The stunning election outcome was expected to ruffle financial markets that were expecting a comfortable win for Najib and the BN. Mr Najib, 64, said earlier that he and his wife Rosmah Mansor would go on a holiday on Saturday and would return next week.

Inflation is also expected to be lower in 2018 than expected three months ago, at 2.4% rather than 2.7%. The Inflation Report showed that about one quarter-point hike a year will be needed to return inflation to the goal after the first increase in a decade last November. "Overall, our United Kingdom team noted that given the lower urgency for a rate hike due to the need for "limited tightening" over the forecast horizon, they see an increase in rates contingent on growth bouncing back and negotiations on the Brexit front staying positive, while their call for an August rate hike stands".

"We fully expect the current scepticism of the BoE's guidance to ebb away, which will provide increased support for the pound as we advance toward the next key policy meeting on 2nd August", said Lee Hardman, FX strategist at MUFG.

"The prospect of excess demand over the forecast period has reduced the degree to which it is appropriate for the MPC to accommodate an extended period of inflation above the target".

The MPC forecast GDP growth to increase after the weak Q1, which it attributes to temporary factors, especially the poor and prolonged winter weather.

"Survey indicators suggest that growth was somewhat stronger in first quarter than implied by the preliminary estimate", the committee added.



Other News

Trending Now

Kevin Kamenetz Cause Of Death: How Did Governor Candidate Actor Die?
On Twitter, Hogan wrote, "the First Lady and I are shocked and grieved by the sudden passing of [Kamenetz]". He was serving his second term since initially being elected Baltimore County executive in December 2010.

United players want to win FA Cup for Ferguson, says Mata
So when you find one of them you have to value and you have to keep and in this case is not about me, it is about the club. Jose Mourinho insists Manchester United are "confident" of Sir Alex Ferguson recovering from a brain hemorrhage.

SpaceX to debut upgraded Falcon 9 rocket
SpaceX is set to debut the latest and most advanced version yet of its workhorse Falcon 9 rocket, called the Block 5, on Thursday. Bangabandhu-1 is a communications satellite and is named after Bangladesh's founding father, Bangabandhu Sheikh Mujibur Rahman.

Tristan Thompson Talks About Raising His Daughter
We've all got to hear how Khloe Kardashian was feeling about her boyfriend Tristan Thompson's cheating scandal . My physique shouldn't be doing what I really feel like my thoughts is telling it to do.

Ford F-150 Production Suspended
Last month, Ford sold more than 73,000 F-series pickups with a majority being the F-150 model. Super Duty production at Ford's Avon Lake, Ohio plant has not been impacted thus far.

What moms really want on Mother's Day
You've always supported every dream or goal of mine, regardless of how unattainable and ridiculous they may have been. All the sacrifices, however, will be worth it because of all the joy and laughter and happiness they will bring you.

China and Japan agree to set up hotline to prevent military clashes
China had also resisted Japan's insistence that the agreement should not cover the territorial waters surrounding the islets, controlled by Japan.

EPL round-up: Kane fires Spurs into Champions League as Chelsea's charge falters
Tottenham were a bit anxious and we had enough chances to score. "You will need time to let that happen". To achieve the top four , I think it is a massive, massive achievement.

Pro basketball: Toronto Raptors fire coach of year Casey
Lowry said the Raptors still hadn't adjusted to playoff basketball, and needed to learn how to change things on the fly. The Raptors' historic season came after Ujiri called for a "culture reset" last off-season.

Facebook bans foreign campaigning in Ireland's abortion referendum
As for who is paying for those ads, said Sheridan, "the only people who know that for certain are Facebook themselves". Ireland doesn't allow political donations from other countries, but its laws don't cover advertising on social media.