Everitt Lawson Group: UK Interest Rates Will Likely be Kept Steady

Everitt Lawson Group economists say Brexit delay could cause BoE to leave borrowing costs
unchanged for most of this year.

Taipei, Taiwan, May 06, 2019 --(PR.com)-- Citing lower than anticipated inflation figures, Everitt
Lawson Group economists are predicting that the UK Monetary Policy Committee will leave interest
rates unchanged for most of this year after the Committee unanimously voted to keep rates at 0.75% when
it held its meeting last week.

In the past, the Bank of England has clearly stated that if the United Kingdom is able to avoid a no deal
Brexit, interest rates will need to be steadily increased over the next few years in order to stave off
inflationary pressures mounting within the economy. Everitt Lawson Group economists say this can be
interpreted as one rate increase per year. But due to the delay of Brexit and uncertainty surrounding its
outcome, Everitt Lawson Group economists say the likelihood of an interest rate hike during the course of
this year has slipped to 25%.

The BoE is not the only central bank to make this shift in monetary policy. After an economic slowdown
in China and Europe, the European Central Bank, Bank of Canada and the US Federal Reserve have all
indicated that they will hold off on raising interest rates while economic prospects are so uncertain.

The Bank of England was very committed to ongoing tightening of monetary policy and deciding not to
raise interest rates in 2019 would go against that commitment but, although unemployment is low and
wage growth is good, Everitt Lawson Group economists say there are still valid concerns regarding the
UK's consumer economy and the impact Brexit will have on business investment.

Page 1/2
PR.com Press Release Distribution Terms of Use
Contact Information:
Everitt Lawson Group
Matthew Flyn
011886277417927
Contact via Email

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/784113

Page 2/2
PR.com Press Release Distribution Terms of Use