Evening Washington
Sunday, January 17, 2021
  • Africa
  • Asia
  • Europe
  • latest news
  • USA News
  • World
  • Other
    • TECH
    • Health
    • Fashion
    • Sports
    • Business
No Result
View All Result
  • Africa
  • Asia
  • Europe
  • latest news
  • USA News
  • World
  • Other
    • TECH
    • Health
    • Fashion
    • Sports
    • Business
No Result
View All Result
Evening Washington
No Result
View All Result
Home Business

HIKE: Shadow MPC backs Bank of England in first rate hike in a decade

admin by admin
November 1, 2017
in Business
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The Bank of England is expected to raise interest rates tomorrow, bringing an end to an extraordinary decade without a single hike.

City A.M.'s shadow monetary policy committee (MPC), including some of the most prominent economists in the Square Mile, narrowly backed the move, but remained split by five votes to four in favour of raising bank rate by 0.25 percentage points.

RELATED POSTS

US pushes ahead with new rules for Chinese firms

Elon Musk passes Bill Gates to become world’s second-richest person

See how they voted below.

Some of the Bank's policymakers are expected to exhibit similar worries about the underlying strength of the economy despite a slight third-quarter pick-up. However, persistent messages that a rate rise in imminent mean the central bank's credibility will take a severe hit if it does not follow through.

The last time bank rate changed was in August 2016, when governor Mark Carney announced a 0.25 percentage point cut to 0.25 per cent, as well as corporate bond purchases in the immediate aftermath of the Brexit vote.

However, the last time bank rate rose was 5 July 2007 – to 5.75 per cent – before the first shockwaves from the global financial crisis became evident in the British economy.

The Shadow MPC's votes

Jacob Nell, chief UK economist, Morgan Stanley, guest chair

HIKE With unemployment holding below our 4.5 per cent estimate of full employment, the UK is running above potential. For most members, this implies growing inflationary risks and now justifies a hike. In addition, the government’s switch to supporting a transition has reduced the risk of a disruptive Brexit, and a reason for caution. In line with our September guidance, and further encouraged by higher October inflation and growth prints, we have voted for a hike, and expect to hike again, at a gradual pace, if the economy evolves as expected.

Mike Bell, global market strategist, JP Morgan Asset Management

HOLD Weakness in the housing market and in retail sales, combined with continued uncertainty over the likelihood of a transition deal, would prevent me from voting for a rate rise until wage growth starts to accelerate.

Adam Chester, head of economics, Lloyds Bank Commercial Banking

HIKE The economy appears strong enough to withstand a modest by 0.25 per cent tightening in policy. Meanwhile, inflation is set to rise above three per cent in the coming months and the labour market has tightened further since the last BoE inflation report.

Simon French, chief economist, Panmure Gordon

HOLD Whilst I believe there is little to fear from a 25bp rate increase, the risks are asymmetric. The risk that a rate hike slows growth further is of greater concern to me than inflation spiralling out of control.

Ruth Gregory, UK economist, Capital Economics

HIKE by 0.25 per cent. The economy’s ongoing resilience suggests that the emergency levels of policy support implemented after the referendum are not still warranted.

Tej Parikh, senior economist, Institute of Directors

HOLD With subdued real wage growth already squeezing households, and an uncertain economic outlook, rate rises should remain on hold for the time being – particularly with the inflationary impact of the weakened currency soon expected to fade.

Kallum Pickering, senior UK economist, Berenberg Bank

HIKE Demand growth since the Brexit vote has slowed by much less than anticipated. Without higher interest rates, inflation will overshoot the two per cent target over the medium term.

Vicky Pryce, chief economic adviser, Centre for Economics and Business Research

HOLD Most economic indicators suggest a slowdown ahead and third-quarter data confirm the lack of meaningful improvement in growth. Forecasts for 2018 revised downwards as consumer slowdown compounded by low investment.

Simon Ward, chief economist, Janus Henderson Investors

HIKE The ill-judged August 2016 cut should have been reversed sooner. Growth is stable and high inflation is not just due to sterling – unit labour costs are rising much faster than forecast.

Let's block ads! (Why?)

Original Article

ShareTweetPin
admin

admin

Related Posts

US pushes ahead with new rules for Chinese firms

US pushes ahead with new rules for Chinese firms

by admin
December 3, 2020
0

The US House of Representatives has passed a law to kick Chinese companies off US stock exchanges if they do...

Elon Musk passes Bill Gates to become world’s second-richest person

Elon Musk passes Bill Gates to become world’s second-richest person

by admin
November 24, 2020
0

Tesla boss Elon Musk surpassed Bill Gates to become the world’s second-richest person as the electric-car maker continued its staggering...

Philippines to cancel Landing’s $1.5B casino project

by webadmin
November 6, 2020
0

When we get out of the glass bottle of our ego and when we escape like the squirrels in the...

Australian PM Pitches Digital Economic Recovery

by admin
October 21, 2020
0

Scott Morrison wants Australia to become one of the world’s leading digital economies within the next 10 years. The prime...

NBA: Los Angeles Clippers hire Tyronn Lue as new head coach

by admin
October 21, 2020
0

LOS ANGELES (AFP) – The Los Angeles Clippers announced Tuesday (Oct 20) that Tyronn Lue has been promoted from assistant...

Next Post
Rate hike to have ‘modest’ impact on mortgages

Rate hike to have 'modest' impact on mortgages

Fuel to the fire: UK manufacturing increased more than expected last month

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Sport

Mets retaining Luis Rojas as manager

Mets retaining Luis Rojas as manager

November 24, 2020
Nets no longer focused on James Harden trade pursuit

Nets no longer focused on James Harden trade pursuit

November 24, 2020
  • 21.5M Fans
  • 79 Followers
  • 93.2k Subscribers
  • 657 Followers
  • 22.9k Followers

MOST VIEWED

  • ‘Amphan’ may bring first flood of year in Assam: CWC

    ‘Amphan’ may bring first flood of year in Assam: CWC

    0 shares
    Share 0 Tweet 0
  • Where to buy Bitcoin in the UK and how does it work

    0 shares
    Share 0 Tweet 0
  • Goth crocs with spikes and chains exist – and the internet kind of likes them

    0 shares
    Share 0 Tweet 0
  • Russia Scores Gold In Women’s Figure Skating, Leaving USA Ladies Without Medals

    0 shares
    Share 0 Tweet 0
  • 24 Of Genie Bouchard’s Sexiest Shots Off The Court [SLIDESHOW]

    0 shares
    Share 0 Tweet 0

CATEGORY

  • Africa
  • Asia
  • Business
  • Europe
  • Fashion
  • Health
  • latest news
  • Sports
  • TECH
  • Uncategorized
  • USA News
  • World

SITE LINKS

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
  • Landing Page
  • All Features
  • Get JNews
  • Contact

© 2020 eveningwashington.com.

No Result
View All Result
  • Africa
  • Asia
  • Europe
  • latest news
  • USA News
  • World
  • Other
    • TECH
    • Health
    • Fashion
    • Sports
    • Business

© 2020 eveningwashington.com.