According to a majority of economists polled by Reuters, the Bank of England (BOE) should raise its key rate by 25 basis points on Thursday.
Key points to remember
“The Monetary Policy Committee will add another 25 basis points to the Bank Rate this week, bringing it to 0.75% – its pre-pandemic level.”
“The Bank is expected to follow this week’s increase with another 25 basis point hike in the next quarter and a corresponding increase in the third quarter.”
“He will then raise the Bank Rate to 1.50% at the start of next year, the median showed, although that rate was chosen by 15 of 44 economists while 21 saw it lower and eight more. high. In February, it was not expected to achieve this until 2024.”
“Inflation was expected to peak at 7.7% in the next quarter, almost four times the Bank’s 2% target and a marked improvement from the median of 6.6% announced last month. It was expected to slow down in the following quarters, but it will not reach the target until the end of 2023.”
“And 15 out of 18 economists said it was likely or very likely that they would raise their medium-term inflation forecast in the coming months. Only three said it was unlikely.
“Following January’s dynamic expansion, the outlook for this quarter has been changed to 0.7% from 0.4%, but subsequent quarters have all been lowered to 0.4% from 0.9%, 0, 6% and 0.6% last month.”
“Annual rates have also been lowered, with growth now pegged at 3.9% this year and 1.7% next, down from 4.3% and 2.1% previously.”