Expect a mixed week of UK data, but further acceleration in wage growth should be enough to cement expectations for a May rate hike from the Bank of England, according to James Smith, Developed Markets Economist at ING.
“There's now just under a month until the Bank of England’s next meeting and a rate hike looks increasingly like a done deal. Signs of rising wage growth combined with recent Brexit progress now means markets have a rate rise in May virtually priced in - and none of the four BoE speakers last week made any attempts to rein in these expectations.”
“A raft of UK data due next week could be the final test ahead of next month’s meeting, but we suspect most policymakers have probably more-or-less made up their minds. Here’s what we expect.”
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