The Bank of England is not now expected to ease policy until early 2017, according to economists in a Reuters poll who almost unanimously said staying in the European Union would be the best for the UK’s long-term trading prospects.
Britain voted to leave the EU on June 23 and while the economy has so far fared better than expected, sterling has collapsed to levels not seen in over three decades.
That is likely to push the Bank to ramp up its inflation forecasts when it publishes its quarterly review on Nov. 3 although the BoE typically views currency-driven overshoots in inflation as temporary and tries to look beyond them.
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