Interest rates - PwC comments

Nov 01, 2018

John Hawksworth, chief economist at PwC, comments on the latest Bank Rate out today: 

"Had a deal on Brexit already been signed and sealed, the MPC might well have raised interest rates today, given signs that wage inflation is finally picking up and the fact that the Chancellor announced in his Budget on Monday that taxes will be cut and public spending increased from next April.

"But with Brexit uncertainty persisting, it is no surprise that the MPC decided to hold fire on rates for now. We would expect them to continue with this 'wait and see' stance until a deal is agreed by all relevant parties including the UK and European Parliaments. If and when a deal on Brexit is agreed, however, the MPC is likely to resume raising rates next year unless there are other major adverse shocks to the economy."

Ends.

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