Economics
U.K.’s Largest Peacetime Deficit Creates Rate-Hike Conundrum
- Markets predict first rate rise before balance-sheet reduction
- Sunak relying on central-bank QE to keep borrowing costs low
An entrance at the Bank of England in London.
Photographer: Chris Ratcliffe/Bloomberg
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As Bank of England officials consider how to unwind their emergency pandemic-era stimulus, markets have already made up their minds about what the first step will be. The conclusion could spell trouble for Chancellor of the Exchequer Rishi Sunak.