Bank of England Set to Keep Rates on Hold as Global Uncertainty Mounts

• The Bank of England is likely to keep interest rates on hold on Thursday and stick to its mantra of only gradual moves ahead as it grapples with the fallout from U.S. President Donald Trump's trade war and mixed news on Britain's economy.
• All 61 economists polled by Reuters last week expected the BoE to leave its benchmark interest rate on hold at 4.5%, with the next cut likely in May, followed by further reductions in August and November.
• Data published last week showed Britain's economy contracted unexpectedly in January but there was also a noticeable jump in public expectations for near – and long-term inflation. The Monetary Policy Committee will have early access to labour market figures that are due to be published on the morning of Thursday's interest rate announcement.
• "We're probably going to see some slowdown in hiring which, other things being equal, should mean wage pressures moderate," Dean Turner, an economist at UBS Wealth Management, said. "But I'm not expecting that we're going to see a sharp increase in layoffs."
• In February, seven MPC members backed a quarter-point cut while two opted for a bigger half-point reduction. Investors will be alert to any changes in the views of MPC members, some of whom have sounded more worried about the risk of persistent inflation than others.

(Source: Reuters)