BBG Survey: BOE’s next rate move may be up as inflation tolerance tested

Bloomberg conducted a survey on the outlook for the BOE’s monetary policy program heading into 2017, with most economists see rate hike as the next move.

Key findings from the Bloomberg survey:

All the economists surveyed see rates staying on hold at 0.25 percent at this week’s meeting, and the asset-purchase target at 435 billion pounds ($547 billion) of government securities plus 10 billion pounds of corporate debt. 

More than 60% of economists see rate hike as next move

While the next move may be tightening, it may not happen for some time.

41% of respondents see a rate rise by November, up from 21% three months earlier.

The median forecast in a separate poll is for no change in rates until at least early 2019.

Inflation probably accelerated to 1.1 percent in November, according to a separate survey.