Rate rise from BoE looks unlikely after poor economic results

Written by Oliver Wade

Recently it looked almost certain that the Bank of England (BoE) was going to increase interest rates by 0.25%.

In February, BoE deputy governor Ben Broadbent said that it would not be a “great shock” to the economy if the bank raised interest rates more than once this year. However, now it would be a shock if interest rates were to rise.

Recently a wave of poor economic results and April’s disappointing GDP growth of 0.1% has resulted in the chances of an interest rate hike this month dwindling.

Hargreaves Lansdown personal finance analyst Sarah Coles said: “Back in early April, a rate rise at the May meeting was so widely predicted that it seemed nailed on.

“However, over the past few weeks, the picture has changed dramatically. A slew of disappointing data, and efforts by Mark Carney to talk down the chances of a rate rise, mean the markets are now pricing in the chance of a rise at just 8%.”

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