Threadneedle Street is expected to reverse emergency action taken following the EU referendum, when it cut rates from 0.5% to 0.25% to avert a recession. However, that is only a fraction below the expectations of the Bank’s monetary policy committee (MPC), which decides where to set the cost of borrowing. Economists at HSBC expect two rate rises from the Bank, one on Thursday and one in May next year. Raising interest rates would remove support for firms from cheap loans, potentially compounding the problem. City analysts expect the MPC to split on Thursday, with votes against raising rates from two of the Bank’s deputy governors, Dave Ramsden and Jon Cunliffe.

Source: The Guardian October 29, 2017 14:40 UTC