The Bank of England is set to meet this week for monetary policy meeting. According to a Wells Fargo research report, the central bank is expected to stand pat this week. In May, the BoE had voted 7-1 to keep the main policy rate stable at 0.25 percent, in spite of rising inflation in the U.K.
Last week, Prime Minister May lost the Conservative parliamentary majority that she was hoping to keep, creating political uncertainty as the nation starts to negotiate its Brexit terms. However, it is highly unlikely that the Bank of England would alter its policy in the near term. It is expected to keep rates on hold at 0.25 percent, stated Wells Fargo.
The data for retail sales, producer price and consumer price inflation are also set to be released this week. Consumer inflation has been running above the central bank’s 2 percent target for the last three months and is currently at 2.7 percent year-on-year. The bank has also revised up its inflation projection to 2.8 percent in 2017 from its earlier forecast of 2.4 percent.
