Via Reuters overnight ICYMI:
- J.P.Morgan sees BOE's Bank Rate rising to 4.25% by the first quarter of next year, noting that fiscal policy is set to tighten with a lag, and monetary tightening "will take longer to bite than in the past".
- it expects a contraction in the UK's economy in 2023, forecasts UK GDP -0.6% next year (compared with +4.3% in 2022)
JPM cite tighter monetary and fiscal policy, economic damage from the pandemic and Brexit
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The next Bank of England meeting is in December, the 15th:
- market expectation is for a 50 bps hike, which will take the bank rate to 3.5%
2022 has been seen a massive Bank of England rate hike