BoE to keep the rates on hold and reiterate its neutral policy stance - Westpac

Analysts at Westpac expect the MPC to keep the Bank Rate on hold again in May, with longer term downside risks for activity remaining key concerns and the BOE is likely to reiterate its earlier neutral policy stance.

Key Quotes

“The BOE has been balancing concerns about the medium term downside risks for the economy against the lift in inflation. Until recently, it appeared that balance of economic developments was tilting in favour of the MPC adopting a more hawkish stance. However, the latest GDP figures suggest that the pick-up in inflation has started to erode strength of spending in the economy (though this is still a moderation in activity, rather than a sharp slowdown as was feared following the referendum).”