- Analytics
- News and Tools
- Market News
- BoE to raise rates by 50 bps in December – Rabobank
BoE to raise rates by 50 bps in December – Rabobank
On Thursday, the Bank of England raised interest rates by 75 basis points to 3%. Analysts at Rabobank expect a 50 bps rise in December and a 4.75% terminal rate.
Key Quotes:
“There has been a global debate about the current pace of interest rate hikes, the peak at which central banks decide that enough has been done, and the pivot that at some point will follow. Yesterday, the Fed signalled it is looking for a slower pace, to a higher peak, for a longer period of time. The Bank of England is instead signalling it is accelerating the pace, to a lower peak, for a shorter period of time. We don’t fully buy into this and expect the central bank to raise rates by 50 bps in December and eventually to 4.75% next year. This further amplifies the recession, but the UK’s inflation situation increasingly looks like a mix of the US’s and the eurozone’s.”
“A recession may be required to quell inflation. The market isn’t buying it either: investors are still pricing in a peak of 4.7%, but ‘inflation insouciance’ on the part of the central bank put pressure the backend of the gilt curve and accelerated the slump in sterling, to just below 1.12.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
