Earlier on revisions to BoE rate hike forecasts:
- Goldman Sachs now sees 50 bps Bank of England hike in August
- Goldman Sachs expects a 50 bps hike in August and a final 0.25% hike in September
JP Morgan have a variation on this forecast:
- raised their terminal rate forecast for the Bank of England to 5.75%
- forecasting a +25bp hike in August with another two to follow
- “The ‘boiling the frog’ scenario we envision whereby resilient growth and sticky inflation gradually raises terminal rates is playing to script"
- Even if inflation stops surprising the BoE will put greater emphasis on the need to halt the wage-price spiral
- "This new policy rate level in our forecast recognizes that there is a dynamic between wages and prices that needs to be stopped, and assumes the BoE will need to hike further in order to trigger a significant weakening in the labour market"
On Thursday:
3 August then 21 September are the next Bank of England meetings
