Sign up to save your podcasts
Or
Share 14th March 2022 - Bank of England expected to pause
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
14th March 2022 - Bank of England expected to pause
"The Bank of England’s Monetary Policy Committee meets this week, and rather unsurprisingly, the meeting has, yet again, been labelled as crucial.
Ask just about any market commentator, and you will receive a different answer about what the Central Bank needs to do this week. On the face of it, there are just two options; hike or pause. That is obvious, but behind the decision is the MPC member's views on what is important to a ensure that the Committee adheres to its goal to support price stability, while boosting growth
If the vote is for another hike this week, it will go some way towards presenting a tough stance on rising inflation but will dent the prospect of GDP recovering and reaching its expected level in 2022.
If the MPC decides to pause, having hiked at the last two meetings, the economy will receive a boost, but inflation will be in danger of getting out of control.
As far as inflation goes, the bank could allow price rises to continue while their source remains on the supply side of the economy. It will only be when a wages/prices spiral begins.
"
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.
View all episodes
By CurrencyTransfer
5
11 ratings
"The Bank of England’s Monetary Policy Committee meets this week, and rather unsurprisingly, the meeting has, yet again, been labelled as crucial.
Ask just about any market commentator, and you will receive a different answer about what the Central Bank needs to do this week. On the face of it, there are just two options; hike or pause. That is obvious, but behind the decision is the MPC member's views on what is important to a ensure that the Committee adheres to its goal to support price stability, while boosting growth
If the vote is for another hike this week, it will go some way towards presenting a tough stance on rising inflation but will dent the prospect of GDP recovering and reaching its expected level in 2022.
If the MPC decides to pause, having hiked at the last two meetings, the economy will receive a boost, but inflation will be in danger of getting out of control.
As far as inflation goes, the bank could allow price rises to continue while their source remains on the supply side of the economy. It will only be when a wages/prices spiral begins.
"
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.