BOE Growth Downgrade Is Just One Reason for No Rate Hike: Chart

(Bloomberg) -- The Bank of England will probably downgrade its forecast for 2017 growth on Thursday as it also announces that interest rates will stay at a record-low 0.25 percent for now. A hawkish shift at the bank in June briefly sparked speculation of a 2017 hike, but that petered out as the inflation rate dropped, price expectations stabilized and wage growth stayed weak. Markets don't have a rate increase fully priced in for another year, while economists see no move until 2019.

--With assistance from Jill Ward and Harumi Ichikura

To contact the reporter on this story: Fergal O'Brien in London at fobrien@bloomberg.net.

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, David Goodman, Andrew Atkinson