Jump to content

Bank of England (BoE) Interest Rate Decision

Recommended Posts


In the United Kingdom, benchmark interest rate is set by the Monetary Policy Committee (MPC). The Bank of England official interest rate is the repo rate. This repo rate applies to open market operations of the Bank of England with a group of counterparties (banks, building societies, securities firms).

GBP news event: 

BoE Interest Rate Decision at 12:00 (UK Time) 16th December 2021.

BoE holds interest rate


Let us know if you’ll be trading and what results you’re hoping for. Who will be trading?

Due to expected volatility guaranteed stop distances may be widened.


All the best - MongiIG

Link to comment

Round 2: Will the Bank of England hike this time?


By Samuel Indyk, 16th December 2021.

Investing.com – The Bank of England is set to announce its latest decisions on monetary policy on Thursday and there is still a great deal of uncertainty surrounding the decision.

The policymaking Monetary Policy Committee is mostly expected to keep the Bank Rate unchanged at 0.1% despite an improving labour market and surging CPI.

Communication Problem?

Leading up to the meeting last month, the central bank had appeared to signal that interest rate hikes were coming which led to markets pricing in that scenario. However, the BoE refrained from lifting the interest rate from the record low as Governor Andrew Bailey said they wanted more information on how the labour market would evolve after the end of the government’s furlough scheme.

The end of the scheme has not had an obvious impact on the labour market, with the unemployment rate recently falling to 4.2% and the employment rate rising to 75.5%, up 0.2 percentage points from the previous quarter.

Meanwhile, inflation, as measured by CPI, surged to 5.1% in November, the highest in over a decade.

However, despite the increasing inflation and improving labour market, the BoE is not expected to hike the interest rate today.  

The rapidly spreading Omicron variant is likely to keep the central bank from acting to curb inflation.

“At present, given the new Omicron COVID variant has only been detected quite recently, there could be particular advantages in waiting to see more evidence on its possible effects on public health outcomes and hence on the economy,” BoE policymaker Michael Saunders said in a speech on 3rd December.

Saunders voted to lift the interest in November alongside David Ramsden, although the two were outvoted by the other seven members of the Committee.

“Overall, the case remains for the need for “some modest tightening” over the forecast period,” Lloyds Bank analysts said. “However, uncertainties about the health and economic impact of the Omicron wave suggest that the MPC may opt to wait for more information before deciding whether to increase the cost of borrowing, but the decision is still likely to be finely balanced.”

Market Pricing

Following November’s CPI print on Thursday, interest rate futures were pricing in around a 60% chance of a rate hike. Prior to the data. markets had been pricing in a less than 50% chance of a rate hike.

Link to comment




LONDON — The Bank of England on Thursday hiked interest rates for the first time since the onset of the pandemic, increasing its main interest rate to 0.25% from its historic low of 0.1% as inflation pressures mount.

U.K. inflation hit a 10-year high in November as the Consumer Price Index rose by an annual 5.1%, up from 4.2% in October and well above the central bank’s target of 2%.

Meanwhile, the labor market recovery has remained robust, with 257,000 staff added to payrolls in November, even after the end of the country’s furlough scheme.

After the Bank surprised markets by avoiding a rate hike in November, many analysts had suggested that the subsequent data showed the economic conditions were in place to start tightening.

However, the emergence of the omicron variant and its rapid spread in the U.K. have since muddied the outlook going into Thursday’s policy meeting, meaning markets were left guessing.

The International Monetary Fund on Tuesday had urged British policymakers to avoid “inaction bias” ahead of the vote.

—This is a breaking news story, please check back later for more. CNBC

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...