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Bank of England will stick with rate cut signal notwithstanding Brexit bounce

The Bank of England is supposed to say on Thursday that it’s going to cut interest rates to a fraction above zero a bit later this year, notwithstanding signs it actually overestimated the initial shock to the UK’s economy from Brexit.

Most probably the BoE's nine rate-setters voted unanimously at their September gathering in order to keep Bank Rate at about 0.25%, the lowest value in the BoE's 322-year history, as a Reuters survey of economists states.

Besides this, Britain’s number one financial institution will most likely signal that a further rate drop is probably the next time it meets, or to be exact in November, because it to tries to help the national economy to cope with June’s referendum decision to break up with the European Union.

When the Bank of England stepped in with a stimulus push on August 4, it boasted little concrete data on the impact of Brexit. However, since then clues have grown that the British economy, while still heading for a steep slowdown, withstood the initial shock.

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