According to a Reuters poll, economists surveyed expect the Bank of England to keep interest rates on hold at its upcoming policy meeting on Thursday, May 11. The poll was conducted between May 8-10 and included responses from 63 economists.
The median forecast among economists is that the BoE will leave its benchmark interest rate, the Bank Rate, unchanged at 0.5%. This would mark the eighth consecutive meeting at which the BoE has kept rates on hold.
Economists also expect the BoE to maintain its current quantitative easing program, under which it has purchased £745 billion of government bonds since the start of the COVID-19 pandemic. The poll suggests that the BoE is likely to continue with its quantitative easing program until at least the end of 2023.
The BoE’s decision on interest rates will be closely watched by markets and investors. A rate cut would be seen as a dovish move by the BoE and could weaken the pound. Conversely, a rate hike would be seen as a hawkish move by the BoE and could strengthen the pound.
The poll also showed that economists expect the UK economy to grow by 4.3% in 2023, up from a previous forecast of 3.9%. However, economists also warned that the UK economy faces significant risks, including the ongoing COVID-19 pandemic, the war in Ukraine, and rising inflation.
