What do you expect from the England Bank meeting today?
The Central Bank of England has scheduled to keep the UK interest rates without changing Thursday, however, the economy will rarely increase and become more uncertainty in the light of the Trump administration in the United States.
The 9 -Member Monetary Policy Committee is expected to keep the bank’s main interest rate of 4.50 percent because inflation is still higher than the target and is expected to increase in the coming months; Companies are expected to increase prices as a result of minimum wage and a significant increase in higher salary tax.
The inflation rate in the UK rose to the highest level in 10 months in January (January) – the bank’s highest target of 2 percent. Most economists believe it will increase to 4 percent in the coming months.
The Interest Rate Committee declined from the highest level in 16 years to 5.25 per cent in 16 years on three occasions, of which in February, inflation declined from more than 10 per cent in decades.
If the bank follows this gradual policy, at the next meeting in May, it will be reduced again when the bank has weapons with the latest financial expectations of the Bank. The report associated with a decision on Thursday gives a good direction to the economic markets as to whether the May reduction is perfect, as many economists believe.
The British economy, the sixth largest economy in the world, achieved 0.1 percent modest in the fourth quarter and was very disappointing for the government of the New Labor Party, which has grown to increase its first economic policy. Since the global financial crisis in 2008 – 2009, the British economy growth performance is much smaller than the long term.
Critics say that Treasury Rachel Reeves has been somewhat responsible for the dark economic news since the Labor Party returned to power in July 14, because she was in charge of her tenure and, especially when taxes rose, especially on companies.
There are also complexities of customs tariff policies adopted by US President Donald Trump, economists fear that economists will reduce global growth and lead to higher prices. British Prime Minister Kair Stormer hopes that the United States can prevent a modest trade agreement without imposing large -scale customs duties on UK imports.
