Economists see UK interest rates rising during 3rd quarter of 2015
November 28, 2014 8:46 am
Economist say that the first hikes to the Bank of England’s (BoE) interest rates will come six months later than the previous outlook during the third quarter of next year due to lingering low inflation and the slow growth of wages.
Based on the results of a Reuters survey, majority of the fifty polled economists believe the UK’s bank rate to be raised to 0.75% by the end of 2015’s third quarter instead of the original prediction of within the first three months of the year.
Commerzbank’s economist, Peter Dixon, says that, “Following the recent downgrade of the BoE’s inflation forecasts, which I fully buy into, it is difficult to see the Monetary Policy Committee pulling the interest rate trigger any time soon.”
The British economy has so far enjoyed the fastest pace of growth among advanced economies in the world during the past year that initially prompted analysts to forecast that the BoE will rise its borrowing costs ahead of the US Federal Reserve. Struggles in the eurozone and in China as well as falling prices of crude oil and minimal increases to the pay of workers, however, have pulled down the region’s inflation, causing new estimates to be made regarding interest rates.
Economic growth for the UK was at 0.7% during the third quarter.
The material has been provided by InstaForex Company – www.instaforex.com
Economist say that the first hikes to the Bank of England’s (BoE) interest rates will come six months later than the previous outlook during the third quarter of next year due to lingering low inflation and the slow growth of wages.
Based on the results of a Reuters survey, majority of the fifty polled economists believe the UK’s bank rate to be raised to 0.75% by the end of 2015’s third quarter instead of the original prediction of within the first three months of the year.
Commerzbank’s economist, Peter Dixon, says that, “Following the recent downgrade of the BoE’s inflation forecasts, which I fully buy into, it is difficult to see the Monetary Policy Committee pulling the interest rate trigger any time soon.”
The British economy has so far enjoyed the fastest pace of growth among advanced economies in the world during the past year that initially prompted analysts to forecast that the BoE will rise its borrowing costs ahead of the US Federal Reserve. Struggles in the eurozone and in China as well as falling prices of crude oil and minimal increases to the pay of workers, however, have pulled down the region’s inflation, causing new estimates to be made regarding interest rates.
Economic growth for the UK was at 0.7% during the third quarter.
The material has been provided by InstaForex Company – www.instaforex.com
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