.webp)
From 1h ago
08.12 BST
Bank of England expected to raise rates in May
The odds of the Bank of England raising interest rates
again next month have jumped.
The money
markets indicate there is a 97% chance that the BoE lifts Bank Rate by a
quarter of one percentage point to 4.5% in May – up from an 82% chance
yesterday.
The markest
also imply there’s a good chance that rates will hit 5% by the autumn.
The Bank
will be concerned that UK inflation looks to be stickier than hoped.
Martin
Beck, chief economic advisor to the EY ITEM Club, says:
“After a
surprise increase in February, CPI inflation resumed its downward path in
March, falling to 10.1% from 10.4%. The fall in the annual rate was more than
accounted for by falling petrol prices. However, mitigating this was a further
acceleration in food price inflation, which reached its highest level in over
45 years.
“March saw
both core and services sector inflation remain unchanged at 6.2% and 6.6%
respectively. Stickiness in these measures, the latter of which the MPC often
cites as an indicator of domestically generated price pressures, will concern
the committee in advance of its May meeting.
The fact
that this follows the latest labour market data [yesterday], which showed
healthy jobs growth and a surprise pickup in private sector wage rises, and a
stronger-than-expected performance from the economy, will probably tip the
balance towards another rate rise next month.
Sem comentários:
Enviar um comentário