BOE seen hiking rates in 2023, as it looks through temporary inflation rise – Reuters poll

Dhwani Mehta FXStreet

Ahead of next week’s Bank of England (BOE) monetary policy decision, the latest Reuters poll of 67 economists showed that they expect no change to the interest rates this month. However, they predict the BOE to hike rates in 2023.

Key takeaways

“British inflation can rise above 3% before the Bank of England feels discomfort.”

“Inflation will peak at 2.4% in the final quarter of this year before gradually scaling down. The Bank will tolerate it at 3.0-3.5% before feeling discomfort.”

“The economy will expand 4.4% this quarter, stronger than the 4.1% predicted a month ago. For 2021, growth was pegged at 6.2% and in 2022 at 5.2%.”

“None of the 67 economists polled expected any change to borrowing costs when the Monetary Policy Committee meets on June 24. It will be 2023 before the Bank raises rates.”

“Nine of 50 economists in the latest poll predicted an increase before the end of next year compared with four of 35 last month. The median for end-2023 was lifted to 0.50% from 0.25%.”

Read: GBP/USD consolidates losses above 1.3900 on Brexit relief, UK Retail Sales eyed

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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