UK's NIESR: BoE to raise rates to 0.5% by Q2 2022

Eren Sengezer FXStreet

The UK's National Institute of Economic and Social Research (NIESR) noted on Tuesday that they expect the Bank of England (BoE) to raise the policy rate to 0.5% by the second quarter of 2022, as reported by Reuters.

Additional takeaways

"BoE will pause once inflation is past its peak."

"UK GDP to grow 6.9% in 2021."

"UK GDP to grow 4.7% in 2022."

"UK CPI to peak at around 5% in Q2 2022."

Market reaction

This report doesn't seem to be having a significant impact on the British pound's performance against its rivals. As of writing, the GBP/USD pair was up 0.15% on the day at 1.3583.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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