First from the JP Morgan preview of the Bank of England Monetary Policy Committee meeting coming up Thursday, 22 June 2023.
- UK inflation points to a cruel, cruel summer
- we strongly feel that the BoE should hike 50bps
- However, with no forward guidance on the issue .. we continue to forecast a 25bp hike
Yes. And Justin said it best:
Also from JP Morgan, this time less of a preview than a despairing of whats to come for the UK people:
- Karen Ward, a JP Morgan executive who is on the Chancellor’s economic advisory council, told the BBC: “The difficulty for the Bank of England – I mean, no-one envies them their job at the moment – is they have to therefore create a recession… It’s that weakness in activity which eventually gets rid of inflation.”
The BoE sure is an unenviable position. While DM central banks right around the globe have had to aggressively hike rates to fight inflation (excluding the Bank of Japan of course) the Bank of England's job has been made much, much harder by the Brexit debacle that has worsened supply chain snarls and the economy in the UK.
The Bank of England Monetary Policy Committee will announce their decision at 1100 GMT, which is 0700 US Eastern time.
You'll notice the Swiss National Bank is on deck today also, at 0730 GMT, which is 0330 US Eastern time.
Previews of the Swiss National Bank: