Analysts at JP Morgan believe that the Bank of England (BoE) will raise the bank rate to 4.25% by the first quarter of next year.

Key quotes

“Fiscal policy is set to tighten with a lag, and monetary tightening "will take longer to bite than in the past.”

“Expect a contraction in the UK's economy in 2023, forecasts UK GDP -0.6% next year (compared with +4.3% in 2022) due to tighter monetary and fiscal policy and economic damage from the pandemic and Brexit.“

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