BoE: Will it hike again in 2018? – ING

While the announcement of a transition deal should unlock some short-term business spending, there are still some Brexit ‘ifs’, according to analysts at ING.

Key Quotes 

“The jobs market is also showing early signs of faltering, which could limit the potential for a takeoff in wage growth next year. This will keep a lid on consumer spending, and in turn, overall 2018 growth.” 

“Another rate increase is therefore not guaranteed, although policymakers have signalled they would be comfortable with a hike next year. A move in February or May certainly can’t be ruled out, particularly if a transition is swiftly agreed.”