BoE seen ‘on hold’ for the time being – UOB

Economist at UOB Group Lee Sue Ann sees the ‘Old Lady’ keeping its monetary policy conditions unchanged in the near/medium-term horizon.

Key Quotes

“While it is premature to expect a rate cut from the BoE anytime soon, this bears closer attention amidst the weaker UK growth and inflation mix. In addition, the BoE is poised for a leadership change with Governor Mark Carney scheduled to step down after the Brexit process. Furthermore, a successful Brexit may well rnewe efforts to normalize monetary policy instead. As such, our current view is that the BoE will keep its policy rate unchanged at 0.75% for now”.