- Analytics
- News and Tools
- Market News
- EUR/GBP: There are developing growth risks to further rate hikes, suggesting further topside – TDS
EUR/GBP: There are developing growth risks to further rate hikes, suggesting further topside – TDS
The BoE raised Bank Rate 50 bps to 5.00% at today's meeting. Economists at TD Securities analyze EUR/GBP after the announcement.
More hikes ahead
The MPC hiked 50 bps in a 7-2 vote against the universal consensus of a 25 bps hike. The text of the decision was largely unchanged and points to further hikes ahead.
We now expect three more 25 bps hikes in Bank Rate, taking it to 5.75% in November. As policy tightening catches up to the real economy, a recession is likely to emerge this winter, with cuts coming in Bank Rate from February 2024.
Rates are reaching a point where they will have a negative impact on growth, which is feeding back into a weaker currency.
The 50 bps hike plays well into our EUR/GBP topside view, where we could see a push towards the top-end of the recent range back near 0.89 in the months ahead.
© 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
