As the central bank prepares for a new tightening cycle, futures have priced in 120 basis points of increases by the end of 2022 — the most in one year’s time since 2009, when the U.K. was escaping the worst of the global financial crisis, according to UBS.
Philip Shaw, chief economist at Investec in London, is in the camp that the Bank of England will move rates higher by 15 basis points to 0.25%. “Our judgement is that most members will feel that there is relatively little to lose by raising rates by 15bps at this stage, but that its credibility is at stake should rising inflation prove to be more than transitory,” he said.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: