What to Expect from the Bank of England This Week
Arslan Butt • 1 min read
The Bank of England is expected to hold interest rates steady at 0.75% at its upcoming meeting this week, the final meeting before the October 31 deadline for Brexit. The BOE will deliver its monetary policy committee decision on Thursday even as Brexit uncertainties continues to plague the markets and Britain descends into political turmoil.
However, recent economic data releases have given the central bank something to cheer about even amid the cloudy political outlook. Britain’s GDP growth came in at 0.3% in July, higher than expected, while unemployment remains at record lows and inflation stays close to the central bank’s target of around 2%.
There are also expectations that Q3 GDP could come in at +0.2%, keeping the British economy away from a recession as markets feared. Economists widely expect BOE to maintain a wait and watch approach towards the monetary policy until some clarity on Brexit emerges and Britain actually succeeds in leaving the EU.