BOE Could Keep Rates on Hold Before Cutting Them Next Year, Says Danske Bank
Dow Jones09-17 22:00
1400 GMT - The Bank of England will probably keep interest rates unchanged until June 2027 when it could resume cutting rates, Danske Bank's Bjorn Tangaa Sillemann says in a note. "The Bank Rate of 3.75% is already restrictive, and we are more skeptical about the growth outlook for the remainder of 2026," he says. Fears of higher energy prices spreading to core inflation hasn't materialized and there are no signs of spillover effects on food prices. The labor market remains on a cooling trend with job losses accelerating in August. However, if energy prices remain elevated and the economy stays resilient, a rate rise is possible, he says. The BOE voted 6-3 to leave rates at 3.75%, as expected, Thursday.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments