Bank of England Urged to Raise Rates Before Brexit
- Institute says growth likely to recover in second half of 2017
- A ‘modest rate hike’ would be ‘sensible,’ forecaster says
BlackRock's Watson Doesn't See BOE Moving Anytime Soon
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The Bank of England shouldn’t wait until Brexit has happened to raise rates, according to the National Institute of Economic and Social Research.
While the central bank is likely to keep policy unchanged when it announces its latest decision and forecasts on Thursday, it will probably raise the benchmark rate by 25 basis points in the first quarter of 2018, the think tank said on Wednesday. That’s sooner than the institute had forecast in May, when it said the BOE would likely wait until 2019 to remove some of the stimulus it introduced in the wake of the U.K.’s decision to leave the European Union last year.