2023-08-02 13:34:33
Wait for the decision in today’s session
Dubai – Al Arabiya.net
Posted on: August 02, 2023: 02:11 PM GST Last updated: August 02, 2023: 05:34 PM GST
Market expectations are divided regarding the Bank of England’s interest rate decision in Britain, which is due to be issued in Wednesday’s session.
The market has a 62% chance that the MPC will raise interest rates by 25 basis points to 5.25%, according to Refinitiv data.
While 38% expect a second consecutive rise of 50 basis points, following the Bank of England, led by Andrew Bailey, surprised the markets with a big increase in the June meeting.
Inflation in the UK appears to be ebbing, but is still well above other advanced economies and well above the Bank’s 2% target.
Core consumer price inflation fell to 7.9% in June from 8.7% in May, while core inflation, which excludes energy and food prices, remained flat at 6.9% annually, but eased from a 31-year high of 7.1% in May.
Data from the British Retail Consortium on Tuesday also showed that annual store price inflation eased from 8.4% in June to 7.6% in July, falling for the first time in two years on a month-on-month basis, suggesting the country has passed its worst protracted cost of living crisis. .
The British economy has proven resilient recently, despite the Bank of England raising interest rates 13 times in a row. UK GDP slowed in the three months to the end of May, but Britain is no longer expected to fall into recession.
And Goldman Sachs indicated, over the weekend, that the Monetary Policy Committee will monitor three inflation-related indicators to determine the need to tighten monetary policy once more: stagnation in the labor market, wage growth, and service sector price inflation.
1690985541
#Market #expectations #sharply #divided #Bank #Englands #upcoming #interest #rate #decision
