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After Hunt's statement, money markets tilted towards the BoE holding off from another interest rate hike at its March meeting, putting a probability of 58% on no change.
Source: https://www.ibtimes.co.uk/uk-budget-winners-losers-pound-gilts-stocks-1714158
A hawkish BoE should continue to support the British pound.
Bailey and other top BoE officials faced two hours of often harsh criticism from lawmakers during a question-and-answer session in parliament about the central bank's failure to forecast the scale of inflation's jump.
BoE maintains counter-cyclical capital buffer rate at 2%financialjuice.
BoE: We recommend action as soon as possible to strengthen rules for LDI fundsfinancialjuice.
But now as the BoE base rate rises, savings rates are going up.
Source: https://www.mirror.co.uk/money/dont-bank-it-savings-rates-30362210
Futures markets indicate that investors do not expect the BoE to make any rate cuts until June, while both the European Central Bank and the Federal Reserve are predicted to make cuts in March.
How high does the BoE need to go to slow this ride we’re on down?
In the UK, despite some very weak data recently, the BoE has not been pushing back on market expectations that rates will rise by a further 100bps to 4.5%.
Source: https://www.irishexaminer.com/business-columnists/arid-41060108.html
It may also reflect gilt markets pricing in expectations the BoE will be done with rate hikes soon, but will not be able to cut rates even in the face of economic weakness.
“It was only back in November when the BoE were sitting there saying: ‘We are going into one of the longest recessions the UK has ever experienced’.
Markets see a 40 percent chance that the BoE will raise interest rates by half a percentage point to 5 percent, rather than the quarter-point move previously expected, in an effort to control inflation.
Source: https://azeritimes.com/2023/07/02/causes-consequences-of-uks-stubbornly-high-inflation/
Of course, the extent of additional rate hikes from the BoE will depend on the evolution of inflation.
Source: https://www.irishexaminer.com/business/economy/arid-41170486.html
Prior to last week markets had embraced the likelihood of a BoE base rate hike of 25 basis points, adding 0.25 per cent to take the benchmark rate to 4.25 per cent.
The Bank of England (BoE) has begun its due consideration on CBDC.
The BoE had struggled to explain its policy strategy to financial markets and it appeared to be buffeted by individual pieces of data that came in higher than expected, NIESR said.
Source: https://business.inquirer.net/414898/uk-inflation-to-exceed-boe-target-for-next-4-years-niesr
The BoE has acknowledged monetary policy is now “restrictive”.
Source: https://www.forexlive.com/news/weekly-market-recap-31-04-august-20230804/
The BoE has increased interest rates sharply, taking them to 5 per cent last month, raising concerns about a hit to households, businesses and a possible recession.
The BoE is worried that recent strong headline pay growth could turn into a long-lasting problem for the economy, and on Thursday it forecast much stronger wage growth and lower unemployment than three months ago.
There's not much time left until the Bank of England (BoE) announces its review of the interest rate.
Source: https://www.manchestereveningnews.co.uk/news/uk-news/bank-england-announce-interest-rates-27989320