FOREX TradingCharts.com

Financial News: Bank Of England To Stay On Hold Until

Bank Of England To Stay On Hold Until Outlook Becomes Clearer: Capital Economics

06/11/2017 - 00:15:00 (RTTNews)

(RTTNews) - The Bank of England is more likely to keep rates firmly on hold than before the election at the next week's meeting and refrain from making any strong signals about the outlook for policy, Paul Hollingsworth, an economist at Capital Economics, said.

With the General Election resulting in a hung parliament, there is a lot of uncertainty about the outlook for demand, Brexit and policy, he noted.

A government was formed quite quickly after the 2010 election and the EU referendum. But it could take longer this time around, he said.

The economist said if Prime Minister Theresa May is unable to get a Queen's Speech through parliament, then a second election in a few months' time looks very possible.

And if the Labour Party leader Jeremy Corbyn was able to form a "progressive alliance" with a working majority, then the mix between fiscal and monetary policy could be vastly different, he added.

On the top of all this, the economist said there is additional uncertainty caused by two vacant spots on the monetary policy meeting from next month.

June's meeting will be Kristin Forbes' last. And following her resignation, Charlotte Hogg's spot is still vacant.

Kristin Forbes is likely to drop her call for a rate hike due to the uncertainty created by the election result, the economist said. She demanded quarter point rate increase in the past two meetings.

The recent news on the economy has been somewhat mixed. The statistical office had revised down its first quarter GDP growth to 0.2 percent from 0.3 percent. Moreover, construction and industrial output figures tentatively suggested that the sectors will provide negligible contributions to the GDP growth in the second quarter.

On the other hand, retail sales figures were much more upbeat and Purchasing Managers' survey and the growth indicator of the Confederation of British Industry pointed to growth of 0.5 percent or so in the second quarter.

Further, there were signs that labor market slack has eroded faster the bank had expected.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2017 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Weidmann Says Govt Bond Purchases Put ECB Dangerously Close To Fiscal Policy (27 min(s), 48 sec(s) ago)
(RTTNews) - Buying government bonds placed monetary policy dangerously close to fiscal policy, Eur ...Full Story»

U.S. GDP Growth Unexpectedly Upwardly Revised To 1.4% In Q1 (54 min(s), 48 sec(s) ago)
(RTTNews) - Economic activity in the U.S. grew by more than previously estimated in the first quar ...Full Story»

U.S. Weekly Jobless Claims Unexpectedly Inch Up To 244,000 (01 hr(s), 05 min(s), 48 sec(s) ago)
(RTTNews) - After reporting a modest uptick in first-time claims for U.S. unemployment benefits in ...Full Story»

U.S. Q1 GDP Growth Unexpectedly Upward Revised (01 hr(s), 31 min(s), 48 sec(s) ago)
(RTTNews) - Economic activity in the U.S. grew by more than previously estimated in the first quar ...Full Story»

U.S. Weekly Jobless Claims Unexpectedly Edge Higher (01 hr(s), 35 min(s), 48 sec(s) ago)
(RTTNews) - After reporting a modest uptick in first-time claims for U.S. unemployment benefits in ...Full Story»

Eurozone Economic Sentiment Near Decade High (02 hr(s), 31 min(s), 48 sec(s) ago)
(RTTNews) - Eurozone economic confidence strengthened more-than-expected to a near decade-high in ...Full Story»

Czech Central Bank Holds Rate Steady (02 hr(s), 53 min(s), 48 sec(s) ago)
(RTTNews) - The Czech central bank kept its key interest rate unchanged on Thursday for a second c ...Full Story»

Iceland Inflation Eases Further In June (03 hr(s), 34 min(s), 48 sec(s) ago)
(RTTNews) - Iceland's consumer price inflation eased for the second straight month in June, fi ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Weidmann Says Govt Bond Purchases Put ECB Dangerously Close To Fiscal Policy

06/29/2017 - 09:44 AM (RTTNews)
(RTTNews) - Buying government bonds placed monetary policy dangerously close to fiscal policy, Eur ...Full Story>>

U.S. GDP Growth Unexpectedly Upwardly Revised To 1.4% In Q1

06/29/2017 - 09:17 AM (RTTNews)
(RTTNews) - Economic activity in the U.S. grew by more than previously estimated in the first quar ...Full Story>>

U.S. Weekly Jobless Claims Unexpectedly Inch Up To 244,000

06/29/2017 - 09:06 AM (RTTNews)
(RTTNews) - After reporting a modest uptick in first-time claims for U.S. unemployment benefits in ...Full Story>>

U.S. Q1 GDP Growth Unexpectedly Upward Revised

06/29/2017 - 08:40 AM (RTTNews)
(RTTNews) - Economic activity in the U.S. grew by more than previously estimated in the first quar ...Full Story>>

U.S. Weekly Jobless Claims Unexpectedly Edge Higher

06/29/2017 - 08:36 AM (RTTNews)
(RTTNews) - After reporting a modest uptick in first-time claims for U.S. unemployment benefits in ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.