Bank of England Seen Holding Rates at 3.75% as Markets Still Price 1 Hike
Updated
Updated · Financial Times · Jul 26
Bank of England Seen Holding Rates at 3.75% as Markets Still Price 1 Hike
3 articles · Updated · Financial Times · Jul 26
Summary
Thursday’s Bank of England decision is expected to leave borrowing costs unchanged at 3.75%, extending a pause after recent inflation and labour data came in better than expected.
UK unemployment has held steady and wage growth is cooling, reducing immediate pressure for a move even as policymakers watch incoming data closely.
Markets still expect at least one rate increase before year-end because the longer-term outlook has grown less certain with renewed US-Iran tit-for-tat fighting.
The BoE decision lands in a crowded week for central banks, with the Federal Reserve also seen holding and the Bank of Japan expected to continue policy normalisation.