Bank of England preview: Rates on hold through 2017 - Wells Fargo

According to analysts from Wells Fargo, after the Monetary Policy Committee meeting, the Bank of England will keep rates unchanged. They see the central bank on hold through 2017. 

Key Quotes: 

“Economic growth in the U.K. downshifted in Q1, weighed down by softening in the service sector which suggests that consumer spending started the year on a weaker note. In addition, CPI inflation has started to pick up, helped by the rebound in energy prices, and core CPI has moved higher as well. The jump in prices has started to eroded real income growth and reduced growth in consumer spending, which we expect to remain a headwind for the U.K. economy.”

“At the Bank of England’s meeting next week, we look for the Monetary Policy Committee (MPC) to keep its bank rate unchanged at 0.25 percent and remain on hold through 2017 due to the slowing growth and rising inflationary pressures the economy is facing.”

“Although shifting inflation dynamics could cause some of the MPC members to sanction a rate hike sooner rather than later, the current accommodative stance will likely remain in place.”