BoE: Key thing to watch will be the tone of the accompanying policy statement - Westpac

Strategists at Westpac expect the BoE’s MPC to keep the Bank Rate on hold again in March but suggests that the key thing to watch will be the tone of the accompanying policy statement.

Key Quotes

“At its February rate decision, the Bank of England left the Bank Rate on hold at 0.25% and reiterated its has a neutral policy stance, noting that “Monetary policy can respond, in either direction.”

“We don’t expect a significant change in bias, but we may see some more hawkish comments creeping in. The past few months have seen continued resilience in activity. At the same time, inflation has been pushing higher, particularly for imported household necessities like food and fuel. Nevertheless, the longer term downside risks for activity are likely to remain front and centre for the BOE.”