The fed out of the way to raise interest rates The bank
of England look at first
The United StatesRaising interest rates for the first time in nearly 10 years, forThe bank of EnglandClears the way take similar action.Even so,The BritishThe central bank is in no hurry to follow up to raise interest rates.For Mr Carney, the most important is he can assess the U.S. economy and the market reaction to rising borrowing costs, and then their action.After all the matter rate hikes.
The bank of England governor carney said in an interview with the financial times on December 16th,Increases in interest ratesConditions are not satisfied, and the UKgoodA period of rates low for a long time, not to raise interest rates across the year.
Britain's economy may have next year for the third year in a row among the world's fastest growing list top, just like the United States, Britain's unemployment rate is declining.But face the inflation rate close to zero, low wage growth, as well as the mainThe euro zoneUltra-loose monetary policy of trade partners, he has stressed that he will not necessarily followThe federal reserveChairman of theyellenSteps to raise interest rates.And, of course, he was in July signal, and suggests relevant the decision whether to raise interest rates for the first time since 2007 would be clearer before and after the end of the year.And in October this year, and analysts are betting the bank of England will follow the footsteps of the United States to raise interest rates.But after that the BritishdataHas been weakened, the inflation rate is only 0.1%, still far below the bank's target of 2%.
In November's inflation report, for the first time the bank at the beginning of 2017 is expected to raise interest rates, and announced cuts today next year, inflation expectations, raising expectations of inflation in 2017.In the next two years the CPI has downside risks, to balance in three years.
However, analysts for the bank to raise interest rates for the first time in seven years time points have different predictions, Vicky Redwood, an analyst at capital economics said earlier, still think the bank of England will raise interest rates in the second quarter of next year, will be very slow pace of rate.According to CNBC reported that the British business lobby - director of the society, the Institute of Directors), said the fed raising interest rates will reduce deflationary pressures in Britain.As theThe dollarStronger commodity prices could bring from England, and boost the UK inflation trends, the bank of England rate rhythm may in advance.
The bank of England announced the next interest rate decision was on January 14th.UK interest rates since 2009 has been at a record low of 0.5%.
In addition to the outlook for inflation, there are many reasons could cause who maintain a cautious attitude, especially the UK will stay at the end of 2017The European UnionA referendum, and the chancellor of the exchequerOsborne,Further cuts in spending plan - this is the part of the task to achieve a budget surplus.
These two factors are likely to affect economic growth and the assessment of the bank of England.
In the past two years, he has been in some situations that may have been close to rate the turning point.But as a former President of king found that the exact point in time, to take any action are cleverly balanced.The outside world has criticized king in 2007-09 financial crisis response speed is too slow.
Financial markets reflect at the end of 2016 to 2016, the bank of England will rising interest rates, but a Reuters poll of most analysts believe the central bank will action, early time point fall in the second quarter of next year, now he faces the challenge, is to ensure that signals the right in the next few months.
Blackrock's director of global bond Scott Thiel said before the resolution on the fed to raise interest rates, investors try to determine the bank of England's monetary policy decision-making method, and the ultimate point of the interest rate rises, but the bank of England is always changing.
British central bank officials in recent months was restrained, saying only that is watching and waiting to see in the next few months the British economy, no longer as before release may be a clear signal to raise interest rates.
Another key factor is the bank of England, raising interest rates will giveThe poundThe impact of.From the beginning of the year to this period of time before the federal reserve to raise interest rates decided, pound, up 4% against a basket of currencies, the dollarThe euroRose 6.6%.Since December 1, as the U.S. expectations for higher interest rates rising, the pound down about 0.6% against the dollar, to the British exporters slightly great comfort.
But if the bank of England change the wording, hints or soon to follow the fed's pace, could push the pound against the euro further strengthened, becauseThe European central bank (ECB)Is the opposite direction, to provide more stimulus for the eurozone.
The pound rose will certainly make the exporters interests is damaged, and further dampen hopes for the economy is less dependent on domestic
demand.Sterling strong will delay to closer to the bank of England inflation target time.
The fund management companyThe Pacific Ocean(601099,Stocks!) investment management co (PIMCO) Britain portfolio director Mr Amey, according to the federal reserve chose to raise interest rates, while the European central bank to take comfortable position, in the face of interest rate decisions these two different forces, he has "caught in the middle, in a dilemma.