‘Super Thursday’ To Offer Clues On Rate Rise

  The markets are waiting for hints as the Bank of England prepares to release a deluge of information.

 

The Bank of England may give a greater clue on the timing of an interest rate rise today when it unleashes a raft of information in one afternoon - dubbed Super Thursday.

There has traditionally been a two-week gap between the release of its interest rate decision and the minutes of the Monetary Policy Committee (MPC) meeting which reaches the rate figure.

But that will all change at midday today when the rate announcement will be coupled with the minutes, which outline how the nine MPC members voted and the views expressed on the committee.

Add to that the release of the Bank's quarterly Inflation Report - also at midday - a letter to the Chancellor to explain why inflation is well below the 2% target and a news conference there is all the Bank's thinking on the UK economy in the public domain in one shot.

Governor Mark Carney gave his strongest hint yet last month that the prospect of an increase would come into sharper focus this coming winter. He said rates would probably rise slowly, reaching a level that is "about half as high as historical averages" of 5%, from its current record low of 0.5% - a level it has remained at since March 2009. But he tempered his remarks by saying shocks to the economy and shifts in the exchange rate could affect the timing and size of any increases.

The Bank has been waiting for stronger wage growth to emerge before contemplating the timing of an increase. Bank rate was last increased in July 2007 when it went up to 5.75%.

Forrás: Sky News