BOE Preview: A 25-bps rate hike but pushback against market pricing – Scotiabank
Analysts at Scotiabank offer a sneak peek at what to expect from the Bank of England’s (BOE) monetary policy announcements due on ‘Super Thursday’ at 1200 GMT.
Key quotes
“We see a 25bps hike but some pushback against market pricing.”
“Market pricing for the BoE has held steady at a 95-100% chance of a hike (in February) and a total of five 25bps hikes by end-2023.”
“We think it’s more likely that the bank delivers only 100bps in rate increases this year, which should eventually act as a headwind for the GBP as markets reprice expectations.”
“We see the 1.36 mark as a near-term ceiling for the GBP.”
“It would take a clear sign from the BoE that it is willing to go above its neutral rate for the pound to test 1.38.”
Read: BOE Preview: Bailey needs to go beyond a rate hike to boost GBP/USD on Super Thursday