BoE faces decision day, caught between inflation and slowdown risks – Reuters UK

BoE faces decision day, caught between inflation and slowdown risks – Reuters UK

LONDON, Nov 4 (Reuters) - The Bank of England will deliver its most hotly awaited policy decision in years on Thursday, when it will either raise borrowing costs from an all-time low or say it is waiting to ensure the post-lockdown economy is ready for a rate hike.

The British central bank is due to make its announcement at 1200 GMT.

Investors have fully priced in an increase in Bank Rate to 0.25% from 0.1%, which would make the BoE the first of the world's big central banks to raise rates since the coronavirus pandemic hit. Economists are far less certain.

The Federal Reserve said on Wednesday it would start scaling back its bond-buying programme this month, a first step towards a first U.S. rate hike not expected until mid-2022. read more

European Central Bank President Christine Lagarde said on Wednesday the ECB was very unlikely to raise rates next year. read