Interest rate predicted to be on hold but rises in pipeline
Governor Mark Carney has already warned borrowers that rates will need to rise “somewhat earlier and by a somewhat greater degree” to get inflation back on target after stronger-than-expected growth in the economy.
Experts believe the comments last month paved the way for another quarter point rate rise as soon as May, with one more due by the end of the year, and another in 2019, which would see rates climb to 1.25 per cent.
Advertisement
Hide AdAdvertisement
Hide AdThe Monetary Policy Committee is set to sit tight in Thursday’s decision, but could make the next move alongside the next set of quarterly inflation forecasts in May,say to economists. Investec’s Philip Shaw said that some on the MPC may even call for an immediate 0.25 per cent rise.