Economists: No rate rise until November

clock

A group of 55 economists believes the Monetary Policy Committee will maintain interest rates at 0.5% this week, as manufacturing and services surveys show the UK economy is slowing.

Economists are also concerned the country's economy is too weak for policy tightening, as severe government spending cuts start to bite, Bloomberg reported. Dutch bank ABN Amro has deferred its forecast, expecting the first rate hike to occur in 2012, despite inflation soaring to 4.5% last month, more than twice the Bank of England's target. Joost Beaumont, an economist at the bank, said: "The MPC will now wait until next year, when most of the fiscal consolidation measures have been implemented and the economy regains momentum." Meanwhile Barclays and J.P Morgan predict the BoE wi...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

OBR intendeds to reduce these forecasts by between 0.2% and 0.5% because of weakness in the economy and labour market shortages

Britain growth forecast to be downgraded before March impacting Budget

Due to weakness in the economy and labour market shortages

Kathleen Gallagher
clock 25 January 2023 • 1 min read
As part of the Brexit agreement the UK said EU fund regulation would be considered “equivalent” until the end of 2025.

UK raises questions over EU fund regulation suitability post-Brexit

Bank of England governor stressed concerns around money-market funds

Kathleen Gallagher
clock 24 January 2023 • 2 min read
Industry Voice: History suggests dividends can continue to grow

Industry Voice: History suggests dividends can continue to grow

The key is finding the right companies

Aditya Shivram, portfolio manager at Fidelity International
clock 20 January 2023 • 1 min read