05 Nov 2026, 01:15 PM

G

Rolling coverage of the latest economic and financial newsGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Predicting a central bank’s actions can be risky, but there will certainly be surprise in the City of London today if the Bank of England doesn’t raise interest rates at midday.The BoE is primarily responding to higher energy prices, but macro data have also turned more hawkish.Growth has been resilient, the labour market has stabilized, and core inflation has edged higher. However, the economy does not look overheated, and pass-through from higher energy prices into core inflation has been modest overall.We expect an 8-1 vote in favour of the move, with only Alan Taylor dissenting. Although several rate setters will vote for the hike reluctantly, developments in the real economy justify it. Strong economic growth and a tentative stabilisation of the labour market suggest that an interest rate hike will restrain economic activity only modestly.9am GMT: UK car sales report for October9.30am GMT: UK construction PMI for OctoberNoon GMT: Bank of England interest rate decision12.30pm GMT: Bank of England press conference1.30pm: US jobless claims report Continue reading...

Read Full Story

Comments (0)