Economists: Threshold for Raising Interest Rates after Bank of England Policy Decision Remains High

Economist David Rees of Schroders Investment stated in a report after the central bank kept interest rates unchanged at 3.75% that the threshold for the Bank of England to raise interest rates remains high. He said that due to the continued risk of high inflation and speculation about leadership changes in the UK after local elections in May, UK bond yields have risen, but it seems unlikely that there will be a rate hike at the moment. He said, "Given some weakness in the labor market and the potential for growth to weaken if disruptions persist, we doubt that the Bank of England will tighten policy unless economic activity remains strong enough to withstand the impact of tightening."