BoE: Next rate hike will occur in May 2018 - TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TDS believe that the next rate hike from the BoE will occur in May 2018, after the UK and the EU27 have struck a transitional agreement.

Key Quotes

“Beyond that, the MPC is likely to continue on a very slow hike path, pausing for one year as Brexit negotiations hit the home stretch. We expect two hikes in 2019. Our forecast is conditioned on continued slow pass-through from the weaker currency to inflation, lower trend supply growth amid decent demand growth, a labor market operating near capacity resulting in wage gains, and a transitional Brexit deal agreed in Q1 that helps lift some uncertainty on households and firms.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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