Aberdeen economist Felix Feather said the Bank of England’s decision to hold
rates was unsurprising. The 6-3 vote, he added, was not as close as markets
assumed. Since the MPC’s July meeting, rising energy prices have increased
inflationary pressure, but to date no additional members have turned hawkish.
Feather sees a high likelihood of a rate hike at the November meeting, which
will publish a full set of economic forecasts and include a press conference,
providing a clearer opportunity to justify a policy shift and marking a natural
start to the tightening cycle.
