May 05, 2022 - 01:28 PM 229 views
Is there any possibility that the
Bank of England (BoE) could speed up things and increase the key rate to 50
basis points (bps)? Commerzbank economists predict that the old lady will
embrace a cautious approach while focusing on the pound.
The Bank of England may temper
expectations for rate hikes in its upcoming sessions
The Bank of England
(BoE) is highly concerned about the various effects of the high inflation
prices on consumer behavior. At the last meeting, it was not unanimous and
everyone did not agree with the point of increasing the interest rates, whereas
one member was in favour of keeping the interest rates steady. Based on the
voting system, it seems that the 50 basis points (bps) rate hike is not liked
According to the
market, each of the rate meetings this year is expected to add 25 basis points.
As well, our economists believe that the Bank of England (BoE) should take a
short break often. If this trend continues following today's rate hike expectations
meeting, markets may slow slightly and settle at negative levels, putting
pressure on the pound.