BOE unlikely to meet hawkish market expectations - Credit Agricole

Credit Agricole on the path for rates

Credit Agricole CIB Research discusses its expectations for the BoE policy trajectory.

"The rates markets are continuing to price in a total of three rate hikes next year, expecting the MPC to focus on the inflation component of the mix of stagflation risks facing the economy," CACIB notes.

"Our own view is that the BoE will struggle to meet the hawkish market expectations especially if the surging cost-push inflation from here erodes the purchasing power of the UK consumers while the withdrawal of government support for the labour market fuels unemployment," CACIB adds.

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