The Bank of England, which signalled a few weeks ago that a fresh interest rate cut was likely next month, has been put on the spot by signs that Britain’s economy has weathered the initial shock of the Brexit vote better than expected.
While the prospect of a rocky divorce from Europe means Britain may need further stimulus from the BoE at some point, a survey of the huge services sector released on Wednesday suggested the economy has so far avoided a sharp slowdown.
The survey added to other indicators that have undermined the view held by many private economists until recently that Britain was heading for a recession after it voted to leave the European Union.
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UK Services Growth Casts Doubt on BoE Rate Cut Prospects – PMI
