BOE Looks Ready to Hike, but Less than Assumed by Investors
Dow Jones
Sep 17
1422 GMT - The Bank of England is likely to raise interest rates at its next meeting in November, Paul Dales at Capital Economics says in a note. While the central bank kept rates unchanged today, four policymakers who voted to hold suggested that unless energy prices fall back, they will soon vote for rate hikes too, Dales says. "That said, we still believe the market has gone too far pricing in rates rising to 4.75%," he adds. Most officials see higher rates as a precaution, not a response to hotter domestic inflation. "As long as energy prices don't rise much further, one or two 25 basis-point hikes is more likely," Dales says, adding that he expects the bank to cut interest rates late in 2027 or in 2028.
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