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The Bank of England MPC at its December meeting Thursday raised the key bank rate by 50 bps from 3.50% to 4.00% as expected. It was the 10th consecuti
[See the full post at: Bank of England Raises Interest Rates 50bps to 4.0%, Projects Inflation Likely Peaked]“After today’s #BoE hike and commentary we look for them to conclude its hiking cycle with a 25bps increase to 4.25% in March
With an expectation for 100bps in cuts over the course of 2024.”Given that the BoE expects services inflation to continue rising, the bar will likely be met for further tightening next month as suggested by “if there were to be evidence of more persistent pressures.”
UK economy is set to remain weak amid the cost-of-living crisis and high interest rates, as well as weak consumer and business sentiment, hobbled by strikes and the lingering impact of Brexit.
BOE Governor Bailey testified before Parliament’s Treasury Committee that he thinks inflation will come down sharply this year, but that risks remain, according to Bloomberg
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