BOE to increase the Bank rate by 0.25bps – Westpac

Analysts at Westpac expect the BOE to increase the Bank rate by 0.25bps at its meeting today.

Key Quotes

“Bank of England left the Bank Rate on hold at its September meeting. However, the MPC noted that activity had actually been a little stronger than they had expected. In addition, the accompanying minutes noted that if activity proceeds as expected “some withdrawal of monetary stimulus was likely to be appropriate over the coming months.”

“While we continue to see the longer-term risk for growth as being skewed to the downside, the potential for a prolonged overshoot of the inflation target is clearly weighing heavily on the BOE. As a result, we expect the BOE to increase the Bank rate by 0.25bps at its November meeting. This will still leave the Bank rate at very accommodative levels. Further ahead, adjustments in the Bank Rate are likely to be very gradual.”