Economists point to key factors for BoE rate decision coming into ‘sharper relief’
Developments in labour market represent crucial signal for monetary policy
As expected, the Bank of England's (BoE) monetary policy committee (MPC) voted 8–1 to hold policy steady today (December 10). The question remains as to what will induce the committee to take action.
Governor Mark Carney triggered speculation in July when he said, in his opinion, the decision on when to hike would "come into sharper relief around the turn of the year". Although hard to construe as firm forward guidance, the phrase did imply the BoE was laying the groundwork to tighten.
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