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BoE holds bank rate at 0.25%

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    BoE holds bank rate at 0.25%

    Taken from the Financial Reporter

    The Bank of England's Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.25% but is prepared to "respond, in either direction", to changes to the economic outlook to ensure a sustainable return of inflation to the 2% target.

    In the minutes of its latest meeting, the Committee says that if spending growth slows more abruptly than expected, there is scope for monetary policy to be loosened. "If, on the other hand, pay growth picks up by more than anticipated, monetary policy may need to be tightened", the MPC said.

    It has increased its expectation for growth in 2017 to 2.0% and now expects growth of 1.6% in 2018 and 1.7% in 2019.

    The Committee said the upgraded outlook reflects the fiscal stimulus announced in the Autumn Statement, firmer momentum in global activity, higher global equity prices and more supportive credit conditions, particularly for households.

    Domestic demand has been stronger than expected over the past few months, and there have been "relatively few signs" of the slowdown in consumer spending that the Committee had anticipated following the referendum.

    However it believes continued moderation in pay growth and higher import prices following sterling’s depreciation are likely to mean materially weaker household real income growth and lower household spending.

    The projected path of inflation is therefore similar to the one expected in November, despite the stronger growth outlook.

    The value of sterling remains 18% below its peak in November 2015, and a continuation of weaker sterling is is expected to boost consumer prices and cause inflation to overshoot the 2% target.

    The Committee says this effect is already becoming evident in the data - CPI inflation rose to 1.6% in December and the MPC says "further substantial increases are very likely over the coming months".

    #2
    Tough job, no change, kerchinga
    http://www.cih.org/news-article/disp...housing_market

    Comment


      #3
      Originally posted by PurpleGorilla View Post
      Tough job, no change, kerchinga
      And even with interest rates at almost f**k all, you still can't afford a house
      When freedom comes along, don't PISH in the water supply.....

      Comment


        #4
        Originally posted by TestMangler View Post
        And even with interest rates at almost f**k all, you still can't afford a house
        Hard Brexit now!
        #prayfornodeal

        Comment


          #5
          Originally posted by TestMangler View Post
          And even with interest rates at almost f**k all, you still can't afford a house
          I have a small house and small mortgage [emoji41]
          http://www.cih.org/news-article/disp...housing_market

          Comment


            #6
            Originally posted by PurpleGorilla View Post
            I have a small house and small mortgage [emoji41]
            And small hands too ?
            Hard Brexit now!
            #prayfornodeal

            Comment


              #7
              Originally posted by PurpleGorilla View Post
              I have a small house and small mortgage [emoji41]
              I have a large house and a small mortgage.
              …Maybe we ain’t that young anymore

              Comment


                #8
                Originally posted by sasguru View Post
                And small hands too ?
                Size isn't everything.
                http://www.cih.org/news-article/disp...housing_market

                Comment


                  #9
                  Originally posted by WTFH View Post
                  I have a large house and a small mortgage.
                  Lovely
                  http://www.cih.org/news-article/disp...housing_market

                  Comment


                    #10
                    Originally posted by TestMangler View Post
                    And even with interest rates at almost f**k all, you still can't afford a house
                    Although with rates at 5% plus I would suggest he might be able to. Funny old world.

                    Comment

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