BoE to unanimously keep rates unchanged and maintain neutral stance - TDS

Strategists at TDS see the Bank of England unanimously keeping Bank Rate unchanged at 0.25% and maintaining its neutral stance.

Key Quotes

“Monetary policy can respond, in either direction, to changes to the economic outlook as they unfold to ensure a sustainable return of inflation to the 2% target.” Last month, the MPC said that “if spending growth were to slow more abruptly than expected, there was scope for monetary policy to be loosened”.”

“We see risks that the MPC emphasizes this more cautious tone in its economic assessment. Real wages have now started to decline and retail sales growth has pulled back very sharply. With household spending driving 2016 growth, there are significant risks that this was spending pulled forward, which could hurt growth this year.”