Following a string of high inflationary figures, markets have raised their expectations for the UK terminal rate from 5% a month ago to 5.75%.
Ahead of the Bank of England Monetary Policy Committee meeting on Thursday (22 June), markets seem set on expecting at least a 25bps hike. David Goebel, associate director of investment strategy at Evelyn Partners, noted: "It was only a few weeks ago that rate watchers were calling an imminent peak for the bank rate." However, following data showing that private sector wage climbed to 7.6% in the three months to April and core inflation rising to 6.8% in April, expectations have shifted radically. ECB meets expectations with 25bps hike Katharine Neiss, chief European eco...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
!['I do not think the Bank will be able [to lower rates] because I do not think inflation will come down much further or much faster. I think we are stuck with a fairly sticky inflation situation,' she said.](jpg/bank-of-england-2-323x202.jpg)
