Yael Selfin, Chief Economist at KPMG UK, comments on today’s Inflation Report and MPC meeting
“The MPC, just like businesses and households across the UK, currently find itself in limbo until a path to Brexit transpires. The moderation in UK growth in recent months, triggered by continued uncertainty around Brexit and a cloudier global economic backdrop saw a significant downgrade to short term forecasts and rules out an early rise in interest rates.
“However, the MPC is unlikely to tone down its rhetoric too much while it seeks to support the pound and encourage sensible borrowing behaviour. It is also unlikely to make a sharp move in policy stance at this stage, given the high number of unknowns.
“Monetary policy is likely to remain accommodating even in the event of a disorderly withdrawal from the EU. The Bank of England is expected to put measures in place to support the economy in order to alleviate any sharp market moves as well as to encourage investment to rebuild broken UK supply.”