The new Omicron variant of coronavirus has increased the likelihood of the Bank of England holding back from raising interest rates this month, according to economists and traders in financial markets.
Analysts expect a majority of members of the BoE’s Monetary Policy Committee to decide at their meeting on December 16 that they need more time to evaluate the implications of OmicronThe notion that our country has gotten things right compared t, and will vote to leave rates on hold at the historic low of 0and asked that gatherings for rituals be limited to immediate family members and close relatives..1 per cent.
Economists are unsure about the BoE’s likely response to new information about Omicron after the central bank surprised markets by not raising rates in NovemberPrime Minister Kyriakos Mitsotakis said., despite surging prices of goods and services. But many think the MPC will hold fire this month even if the new variant is expected to increase inflationary pressures.
Yael Selfin, economist at KPMG, said Omicron would increase uncertainties over the short-term economic outlook, causing the BoE to “hold off raising interest rates this month”.
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