BOE Bird-Watching Shows Doves Set to Dominate This Week
(Bloomberg) -- The Bank of England is set to vote unanimously to keep interest rates on hold at 0.1% this Thursday, according to Bloomberg Economics’ BOE Spectrometer. While rate setters Michael Saunders and Dave Ramsden have sounded more hawkish recently, BE expects only Saunders to dissent in favor of reducing the asset-purchase target for government bonds by 50 billion pounds ($70 billion) to 845 billion pounds, with the rest probably wanting to see how consumers respond to the health risks posed by the delta variant and how the labor market adapts to the end of the furlough scheme in September. Given that official data won’t be available to judge the impact until early 2022, it’s likely that the existing tranche of bond purchases will be completed at the end of the year as currently planned.
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