LONDON (MNI) – The number of economists still predicting the Bank
of England’s Monetary Policy Committee will hike Bank Rate in August is
dwindling fast.
Barclays has pushed its call back from August to November, with its
economists saying in a note that it seems unlikely a majority on the MPC
will back a hike in the next few months with renewed signs of economic
softness both in the UK and globally.
On Wednesday, economists at JP Morgan pushed back their rate call
from August to November.
They cited the possibility that the weakening messages from
industry around the world may not have lifted by the time of the MPC’s
August meeting, and said they expected the middle ground members on the
MPC to extend the wait and see period.
Market rate expectations, based on ICAP SONIA, show just over a 55%
chance of a 25 basis point hike in November with a hike not fully priced
in now until March 2012.
George Buckley, economist at Deutsche Bank, has also recently
pushed back his rate call to November from August.
HSBC has long predicted no change in Bank Rate this year.
For more information contact David Robinson on 44-20-7634 1655 or
e-mail: drobinso@marketnews.com.
[TOPICS: M$B$$$,M$$BE$]
