34% now see a 2014 interest rate increase, up from 12% in early June says a Bloomberg survey.
50% see sometime in Q1 2015 and 8% say Q2.
23/30 say the UK economy has achieved escape velocity.
87% say that the UK housing market is at risk of overheating but 25/29 reckon the FPC took the right action to stem any problems.
The world and his mate know that rate hikes are coming and they’re all long so the upside for the pound is limited on interest rates alone, unless we hear more official talk on a 2014 raise. The risk is that the data deteriorates between now and the end of Q3 as that might push expectations back and have a few longs liquidating.
I hardly see the UK economy going massively backwards so if we get a run of poor economic numbers I’ll be looking for any decent dips to buy into.
