Investment Clock insights

No surprises from Bank of England, despite dissent from hawkish Forbes


Ian Kernohan

16 March 2017

As expected, the Bank of England have left policy unchanged. GDP growth in the first quarter looks to have been close to their forecast, with some signs of a slowdown in household spending. 
A reduction in the equilibrium unemployment rate, supported by a softening in wage pressures in the latest labour market report, suggests interest rates will remain on hold for now. 
The dissenting vote by Kristin Forbes will have come as a surprise to some, although she is a well-known hawk on the committee, who will be leaving this summer.

As expected, the Bank of England have left policy unchanged. GDP growth in the first quarter looks to have been close to their forecast, with some signs of a slowdown in household spending. 

A reduction in the equilibrium unemployment rate, supported by a softening in wage pressures in the latest labour market report, suggests interest rates will remain on hold for now. 

The dissenting vote by Kristin Forbes will have come as a surprise to some, although she is a well-known hawk on the committee, who will be leaving this summer.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.