1516 GMT - The resilience of second-quarter economic activity across Europe to the energy-price shock reduces the risk to employment from an insurance interest-rate hike to guard against a new price-wage spiral, Berenberg's Andrew Wishart says in a note. "We suspect that the Bank of England would follow through with the threat of a 25 basis-point hike if energy prices rise further," he says. However, because the resilience hasn't translated into a revival of demand for staff, disinflation will likely continue. That would allow policymakers to tone down the rhetoric and pivot to lowering rates to support employment, Wishart says. He expects the bank to resume cuts in December and lower the policy rate to 3.0% from 3.75% by mid-2027.
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