Markets Not Expecting Bank of England to Pause Yet: In Charts
- Policy rate of 4.5% is still a long way behind UK inflation
- Hawkish BOE might send sterling above April 2022 level
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It is widely expected the Bank of England will deliver another 25 bps hike Thursday, the 12th straight rise since it started the tightening cycle in December 2021. Whether the BOE will follow the Fed and hint at a pause, or follow the ECB and signal more hikes is the focus of the meeting. The market is leaning toward the latter.
Inflation is still a pressing issue for the UK, with the 4.5% policy rate way behind 10.1% CPI.