BOE Set for Rate Hike Next Week, with Potentially One More to Follow
Dow Jones10-30 17:33
0933 GMT - An interest-rate hike by the Bank of England on Nov. 5 looks inevitable, Thomas Pugh at RSM UK says in a note. "Strong growth, an improving labor market and rising energy prices mean the BOE is almost certain to raise rates from 3.75% to 4.00%," he says. After this, another hike in February seems likely, says Pugh, who expects this to mark the end of the hiking cycle. "We doubt the Bank will need to raise rates to almost 5%, as markets currently price in... Our base case is that inflation will have peaked by February and growth will have slowed significantly, allowing the [Monetary Policy Committee] to keep rates on hold for the rest of the year."
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