England Bank voting, hopes for high interest rate discounts faster

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A tripartite division between the policy makers of the Bank of England surprised investors on Thursday, which led to expectations that the turmoil in global trade will lead the central bank to accelerate the pace of interest rate discounts in the coming months.

But the Monetary Policy Committee of the Bank of England has a clear message to the markets: although the definitions of global growth can be achieved, the Bank of England focuses on the local economy.

“This is” what matters to inflation in the United Kingdom and monetary policy, “said Andrew Billy, ruler of the Board of Directors of” This is “what matters to inflation in the United Kingdom and monetary policy.” To reduce interest rates To 4.25 per cent.

Billy said that the total impact of definitions on inflation is still unclear, as it can decrease global exports and add production costs through global supply chains. But nowadays, the largest factor that drives inflation in the UK was the power of local wage growth.

“There are no interest rates on the automated pilot. It cannot be. Instead, MPC should continue to respond carefully in advanced economic conditions,” said Billy.

The committee members put other weights on various risks, which led to the decision to divide.

MPC members who prefer to reduce the rates of 0.5 points, Swati Dengra and Alan Taylor, believe that inflationary pressures in the UK economy exist on a large scale, and that commercial wars may reach global growth and more export rates than expected, and fall in the United Kingdom. Economic inflation.

A UK and United States trade deal,,, Which were announced on Thursday, this will not be partially reduced, Billy approved, because the greatest influence will flow from the slowdown in the main commercial partners in the United Kingdom, and it depends on the relationship between the United States of China.

However, the latest central expectations in the Boom Board of Directors indicate that the customs tariff will only have a modest impact on the UK economy, as it reduced the level of GDP by 0.3 percent and 0.2 percentage points on its expected horizon for a period of three years, compared to its expectations in February.

“This is not death and depression at all,” said Billy about the reduction to growth.

Although work confidence is still shaken, MPC believes that weak investment by companies will be offset by stronger consumer spending, with a sharp increase in housing investment against the background of government reforms.

The more strictly anxiously the MPC personnel is that families have become more sensitive to short -term price movements since the cost of the living crisis. This may mean that the temporary bump in inflation this year – as a result of the high bills of organized facilities – becomes more stable as workers are pushing for higher wages to maintain their living levels.

HUW Pill, Senior Economist at the Bank of England and a influencing voice on the committee, turned into a more sincere camp, and joins Catherine Man in voting to maintain rates of 4.5 percent.

But even among the five members who voted to reduce prices by a quarter of a point, the majority witnessed the decision “accurately balanced” between any change and average reduction, and felt developments in global trade have led to a balance.

“The large number of liquid” rates of the “liquid” rates: “the large number of views within MPC is a large number of risks,” said Sandra Horsfield, an economist economist, adding that this left expectations for the rates of “very fluid”.

In the economic consulting consultations, Roth Gregory said it seems unlikely that the Bank of England will accelerate the price cuts, even if it is still on its path to make two other cuts at the end of the year by the end of the year.

“The market can exclude the price discounts of the group”, “Rob Wood, the chief economist in the UK in the macroeconomic economy in Pantheon, but added that MPC left the door open to move faster” if the irregular American policy increases demand, or there were signs of serious cracks in the UK labor market. “