Inflation Slips 3.4% – Bank of England Likely Holds Rates
After a sharp dip in consumer prices on Wednesday, economists are betting the Bank of England (BoE) will keep interest rates where they are in its upcoming meeting.
Key Takeaway: No Rate Hike on the Horizon
- Monetary Policy Committee (MPC) Meeting: Scheduled for Thursday.
- BNP Paribas Analysts: Matthew Swannell, Dani Stoilova, and Gerardo Martinez predict the base rate of 5.25% will stay unchanged.
- Reasoning: The latest inflation figures are too small to sway the committee.
Where the Decision Really Stands
Jonathan Haskel — one of the MPC’s most hawkish members — is the focal point. His February vote for a hike was described as “finely balanced,” so his next move remains a mystery.
While the BoE’s core services inflation has ticked down in February, the analysts say Haskel will need more proof of a steady downward trend before he switches his vote back to “hold.”
What if the Vote Split Stays the Same?
In essence, the committee is expected to keep the vote split unchanged. That means the core stance on rates will stay the same — holding at 5.25% for now.
Stay tuned for any surprises tomorrow; the room in the MPC might just be a whisper of change.
