BOE will need to raise bank rate to 4.75% to tame inflation - NIESR

Adds that bringing inflation back to 2% target is something that is likely to take three years

The think tank says that the BOE will have to keep with rate hikes until probably about 4.75% in order to bring inflation back down to its 2% target. Even so, such a likelihood may take up to three years' time to be achieved.

For some context, markets were of the view that the BOE will keep the aggression to raise the bank rate until 5.25% before last week's policy decision. Since then, the central bank has produced a more dovish stance, arguing that markets have "priced in too much".