This quick take via Markit on what to expect from the BoE next week, and into 2021!
- The Bank of England's Monetary Policy Committee is expected to sit on its hands given the still-unclear Brexit process, stable inflation and volatile GDP developments, but the meeting will be closely watched for how the Bank sees the economy faring as Brexit uncertainty intensifies with an upcoming general election.
- We expect UK policymakers will leave rates on hold until the first half of 2021 although, based on survey data, current economic conditions are historically aligned with looser monetary policy.
- UK services PMI data will therefore be high on the agenda. A move deeper into negative territory could push the Bank of England closer to cutting rates.
BoE meet Thursday
