Preview of the BoE meeting on Thursday
The Bank of England Monetary Policy Committee (MPC) meet on 13 September 2018
I popped up Barclays with a great preview here earlier, much to chew on:
This one now via Rabobank, a good summary indeed:
- We expect the Bank of England to keep Bank rate at 0.75% in a unanimous vote on Thursday. This is the consensus view as well and the GBP OIS curve implies a 0% chance of a rate hike.
- After raising rates in August, the MPC will now be in wait-and-see mode while putting emphasis on the risk of further tightening should there be an inflationary no-deal Brexit.
- Even though Brexit 'shouldn't handicap policy making', the MPC will nonetheless only start thinking about raising rates again when it has a better idea of what Brexit will look like.
- We view May 2019 as the first realistic opportunity for the MPC to raise Bank rate to 1.00%.