The British Central Bank Will Maintain Its 0.25% Interest Rate In Line With Expectations.

Earlier today, the figures released by the British Statistics Bureau showed that after the July performance, the monthly sales rate of the 8 quarter was only 0.2% lower than that of the previous month, suggesting that the referendum in June did not have any effect on consumers' willingness to spend.

According to the National Bureau of statistics, although the retail sales month rate in Britain recorded a slight decline in 8 months after the surge in July, the potential trend of the industry remained strong. Overall, the data did not suggest that the consumer confidence in the UK referendum dropped sharply after the euro.

The Bank of England voted 9-0 to maintain the benchmark interest rate unchanged at 0.25%, keeping the central bank's asset purchase scale unchanged at 435 billion, which is in line with expectations. Most members predict that if the outlook for August is confirmed, there will be another interest rate cut in the year. Some recent economic indicators are better than expected. Inflation is expected to reach the 2% target in the first half of 2017.

　　 British Central Mika F Siti, member of the committee, said that expanding QE is still not necessary and will not anticipate the economic outlook for 2017 and 2018. The market is widely expected to stay put this time, because the British central bank has cut interest rates to a record low last month and reintroduced asset purchase plans.

Although some critics say the Bank of England cut interest rates to a record low of 0.25% in August, restarted asset purchases and relaxed lending by offering cheap loans to banks, it is expected that the Bank of England will resume again later this year. Rate cut And this month is unlikely to cut interest rates.

According to Reuters survey, the nine members of the British central bank were likely to unanimously maintain the index interest rate unchanged at 0.25% at the September meeting. At the same time, the central bank will hint that it is possible to further reduce interest rates at the next meeting in November, hoping to help the economy cope with the impact of the June referendum.

Economist Douglas said the Bank of England will be in August. interest rate In the September, it will remain unchanged after 0.25% of the new low. In view of the interest rate cut in August and other package measures, the British central bank eased the economic pressure after Britain accidentally left Europe.

Carney, the governor of the British central bank, defended the central bank's massive stimulus measures in August on September 7th, and said that the initial impact of the euro referendum on the British economy did not seem to be as serious as expected.

Carney pointed out that the Bank of England expects the economy to grow steadily in the year, but economic growth will slow in 2017. Given the uncertainty of the UK, the outlook will start to clamp down on spending and investment growth. The 9 members of the Bank of England's monetary Council do not all agree with the policy measures announced by Carney in August. Investors need to pay attention to their objections at this meeting.

The Bank of England has stressed in August that if the economic development is in line with expectations, it will cut interest rates again, so most economists expect the Bank of England to act again in November. Whether this expectation is still valid is also worth investors' attention. Of course, investors need to be vigilant against the statements made by the BOE officials on interest rates. For example, Carney said before that his "dislike" real interest rate was negative.