The Bank of England (BoE) hiked the Bank Rate by 50 bps to 2.25%. Economists at Danske Bank maintain their call for a 50 bps hike in November and December and 25 bps in February with risks skewed towards additional hikes in 2023.
Another 50 bps hike and more to come
“In line with our expectation, the BoE hiked the Bank Rate by 50 bps to 2.25% with 5 members voting for a 50 bps hike, 3 members voting for 75 bps and one member voting for 25 bps.”
“We pencil in another 50 bps rate hike in November and December and finally a 25 bps hike in February.
“We do not expect rate hikes beyond the February meeting, although another 25 bps rate hike in March seems like a close call at this point.”
“Our expectations fall below current market pricing as we expect BoE to eventually turn less hawkish amid a weakening growth backdrop.”
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