UK Market Plunge Sparks Talk of Emergency BOE Rate Hike
- Deutsche Bank’s Saravelos says large rate hike is needed
- Traders bets show hedging against inter-meeting action
This article is for subscribers only.
The market mayhem that followed Chancellor of the Exchequer Kwasi Kwarteng’s fiscal statement has sparked talk of a possible emergency Bank of England action to calm the turmoil.
As the pound and gilts plunged on Friday, George Saravelos, global head of foreign-exchange research at Deutsche Bank AG, said the bank needed to unleash a sizable interest-rate hike as soon as next week to restore credibility in the wake of the “historical drops.”