BoE’s Representatives Want More Clarity in Rate Hike Path
Members of the Bank of England Monetary Policy Committee are discussing whether to report their tariff plans in more detail, although some are afraid that more transparency will lead to the public seeing statements as commitments, not forecasts. Currently, the Bank of England publishes forecasts of growth, inflation and many other economic indicators. Other central banks, including the US Federal Reserve, regularly publish detailed forecasts of how rates may change.
BoE Governor Mark Carney introduced a policy of giving clearer steers on the future path for rates when he joined the British central bank in 2013. But several of those signals were knocked off course by unexpected changes in the economy.
Following the meeting on March 22, the Bank of England left the benchmark interest rate at 0.5% per annum. Also, the Bank of England has kept the volume of the program of buying government bonds at the level of 435 billion pounds ($616 billion) and the volume of purchase of corporate bonds at the level of 10 billion pounds. It is expected that BoE will raise rates in May only for the second time since the beginning of the global financial crisis more than ten years ago.