Bank of England Could Delay Interest Rate Rises, Again

13-Auf (CSuite) — The pound sterling has fallen on concerns the Bank of England now has the perfect excuse to delay further interest rate rises.

The news, while not good for those hoping for a stronger pound, will be welcomed by businesses looking for interest rates to stay lower for longer.

…Over the last couple of months we have seen economic recovery in the UK slow while average earnings have jumped to 3.2% allowing the consumer a little more spending power.

“This, coupled with this morning’s data is all the more reason for the Bank of England to sit on their hands and if this is not reason enough, then with commodity and oil prices dropping and China devaluing their currency, the inflation pipeline looks to be waning,” says Towner.

The devaluation of China’s Renminbi has been taken as a signal that global financial growth faces downside risks. Markets believe that this is the perfect excuse for both the US Fed and Bank of England to sit tight.

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