The Bank of England (BoE) is expected to keep its interest rate unchanged at 3.75% at its July 30 monetary policy meeting, according to a Reuters poll of 70 economists. None of the respondents expects a change in interest rates at next week’s meeting.
The Reuters survey also showed that the median forecast sees the interest rate remaining at 3.75% through the middle of next year, highlighting expectations that the BoE will maintain a steady policy stance.
Economists revised down their inflation forecast for the year to an average of 3.1%, compared with 3.3% in Reuters’ June poll. Meanwhile, the outlook for economic growth was left unchanged, with the UK economy expected to expand by 1% this year.
Market reaction
The British Pound (GBP) showed little reaction to the release, with GBP/USD hovering around 1.3315 at the time of writing on Friday, lacking a clear intraday direction.
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