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Economics

Shock BOE Rate Hike Drives Traders, Economists to Expect More in 2022

  • Money markets move toward pricing BOE rate at 0.5% in February
  • Nomura, Berenberg economists call for hike at next meeting
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Bank of England Raises Benchmark Interest Rate to 0.25%
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The Bank of England’s surprise rate hike has boosted traders’ and economists’ conviction on a steeper series of increases next year.

Money markets are seven basis points away from pricing a quarter-percentage point hike to 0.5% at the BOE’s February meeting, a level that could pave the way for the central bank to start letting bonds on its balance sheet mature without reinvesting the proceeds.