KPMG comments on Bank of England’s MPC announcement | KPMG | UK

KPMG comments on Bank of England’s MPC announcement

KPMG comments on Bank of England’s MPC announcement

Yael Selfin, Chief Economist at KPMG UK comments on Bank of England’s MPC announcement

1000

Also on KPMG.com

Commenting on today’s Bank of England’s Monetary Policy Committee decision to hold interest rates unchanged at 0.25% by 7-2 vote, Yael Selfin, Chief Economist at KPMG, said:

With the latest unemployment figures suggesting that the UK labour market has reached a simmering point, and the recent jump in inflation meaning it will likely remain well above target for the next few years, you would expect the Bank of England to act.

But, the meagre wage growth we are seeing in spite of these trends is making it harder for the Bank of England to raise rates, especially as any rise will put yet more pressure on households who are already under strain due to a fall in their real earnings.

With so much current uncertainty surrounding the EU exit negotiations, the Bank is likely to tread with extra caution. Developments in the negotiations over next month are likely to firm up expectations for the course of the exchange rate and for the wider economy over the next year, and will form a crucial factor in influencing the date of the first UK interest rate rise since 2007.

-ENDS-

For media enquiries, please contact:

Gill Carson, Senior PR Manager, Corporate Communications

T : 020 3078 4189

M : 07768 635843

E : gill.carson@kpmg.co.uk

KPMG Press Office

T : +44 (0) 207 694 8773

About KPMG


KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

Connect with us

 

Request for proposal

 

Submit