BoE looks set to hike rates for the first time in 10 years - ING

Analysts at ING suggest that this week's Bank of England meeting is likely to be both historic and contentious as the Monetary Policy Committee (MPC) looks set to hike rates for the first time in 10 years.

Key Quotes

“We expect the BoE to continue talking up the possibility of further tightening this week, but with uncertainty elevated, demand sluggish and few signs of domestic inflation, we think the Bank will tread carefully. And while policymakers are keen to avoid getting left behind by other central banks (thus limiting further downside for sterling), and to exit emergency mode as the post-Brexit shock dissipates, the BoE will be wary of repeating the ECB's mistake of tightening too early back in 2011.” 

“We wouldn't rule out a second hike next year, but we are still yet to be convinced the BoE will embark on a meaningful tightening cycle. So the Bank of England has a tricky path to tread when it meets this week.”