Economists at Bank of America Merrill Lynch shift fall from Nov 2016
Expect the Bank of England to lower growth forecasts and deliver a dovish statement on Thursday, economists at Bank of America Merrill Lynch say.
They assume the 'remain' vote will win but believe it's contributing to slower growth. "The question will be how quickly or slowly uncertainty might fade after the EU referendum vote," they write in a note released today.
They expect the BOE to lower its 2016 growth estimate to 1.8% rom 2.2% and next year's forecast to 2.2% from 2.3%.
That's after all 3 PMIs fell in April and retail sales stalled. They see the vote at 8-1 to hold rates with Gertjan Vlieghe dissenting.
