• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / British Sterling / Will the Bank of England raise interest rates given wage growth figures?

Will the Bank of England raise interest rates given wage growth figures?

October 19, 2017 by Dayle Littlejohn

Will the Bank of England raise interest rates given wage growth figures?

For people that are buying or selling the Pound in the short term, their eyes are fixed on commentary coming from the Bank of England as any hints to monetary policy decisions could sway them to convert now or wait until after November 2nd.

In recent weeks forecasters have been suggesting that it is more than likely the Bank of England would raise interest rates to 0.5% however, in recent days the Pound has been falling in value as an interest rate hike could be off the cards.

UK inflation rate reaches 3%

UK inflation numbers were released Tuesday morning and showed a rise to 3%, which provided a small window for foreign currency buyers. However, the Governor of the Bank of England Mark Carney failed to impress the market with his speech shortly after, when he appeared to dodge questions about the likeliness of the Bank of England hiking the rate in November. Nevertheless, he did expect inflation to continue to rise.

Personally, I don’t believe the Bank of England will raise interest rates next month, as inflation has only increased by 0.1% and wage growth is continuing to lag behind the inflation numbers. Would the Central Bank really want to put further pressure on citizens pockets?

A report this week by The Resolution Foundation confirmed that the average UK pay is now at 2006 levels. Furthermore, Deputy Governor of the Bank of England Sir Dave Ramsden also confirmed his worry in regards to the wage growth numbers and insinuated he would not be looking to raise rates.

If my predictions materialise I expect the markets to be disappointed with the Bank of England as they have hyped an interest rate hike, but not delivered. I would expect Sterling to drop in value by a percent or two. But if my predictions are not correct a strong November for the Pound could be on the cards.

Filed Under: British Sterling Tagged With: Bank of England (BoE), Inflation, interest rates, Pound Sterling weakness, UK interest rate, wage growth

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy