Market comment

Bank of England could surprise with 50bps hike


Markets have taken a surprisingly benign view that the Bank of England (BOE) will stick to another 25bps hike to 1.25% when the June policy meeting concludes tomorrow – pricing in little possibility of a more aggressive 50bps hike. However, the BOE could follow the Federal Reserves’ lead, especially following the Conservative’s £15bn fiscal stimulus and further signs high CPI inflation is becoming entrenched in firms’ wage-price expectations.

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Jun 15 2022, 07:10 IST/BST