BoE: Rates lower for even longer - RBS

FXStreet (Bali) - Ross Walker, Senior UK Economist at RBS, now expects the BoE to hold rates until February 2016 from August 2015.

Key Quotes

"Materially lower inflation in 2015, a significant and sustained fiscal policy tightening, heightened political risk and weaker external demand have prompted us to push our forecast for the first Bank Rate rise out to February 2016 from August 2015."

"Our low ‘terminal rate’ expectation remains: with Bank Rate forecast to reach 1.25% by end-2016 (prev. 1.5%) and 2.0% by end-2017."