Central Banks
UK Economists See One More Rate Hike From Bank of England
- Bloomberg survey shows peak at 4.5%, less than markets expect
- Quantitative tightening expected to continue at current pace
The Bank of England headquarters in the City of London, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
UK economists expect just one more quarter-point rate hike from the Bank of England even though inflation is stuck in double digits and investors are bracing for a round of increases lasting through the summer.
A survey of economists by Bloomberg showed most anticipate the key rate will rise to 4.5% on May 11 and then remain on hold, pausing the most aggressive cycle of increases in four decades. That’s despite a raft of data showing both the economy and inflation remain surprisingly robust.