The UK’s central bank kept its record low 0.25 key interest rate steady, but the outlook for the economy and wages is looking gloomy.
Editor’s Remarks: The Bank forecasts the UK economy will grow by 1.7% this year and by 1.6% in 2018, against initial predictions of 1.9% and 1.7%. The pound reached an 11-month high against the greenback yesterday, on the back of positive figures from the services sector. Unemployment at a record low and inflation above the BoE’s target seemed to make a case for the first rate hike in a decade. However, the economy grew at its lowest rate in June since 2012, and inflation also took a dive. With Brexit insecurities growing, investors will be hanging on Mark Carney’s & Co every word for clues on where the economy is headed.