UK Economics

MPC Watch

31 January, 2019

Policy paralysis

While it is guaranteed that the Monetary Policy Committee will leave interest rates at 0.75% at the policy meeting on Thursday 7th February, the accompanying Inflation Report may provide some crucial clues to how keen the MPC is to change rates once Brexit has been resolved. If there is a no deal Brexit, then the MPC would surely cut interest rates. If a deal is reached, we suspect it would raise rates sooner and further than widely expected.

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