The UK's National Institute of Economic and Social Research (NIESR) noted on Tuesday that they expect the Bank of England (BoE) to raise the policy rate to 0.5% by the second quarter of 2022, as reported by Reuters.

Additional takeaways

"BoE will pause once inflation is past its peak."

"UK GDP to grow 6.9% in 2021."

"UK GDP to grow 4.7% in 2022."

"UK CPI to peak at around 5% in Q2 2022."

Market reaction

This report doesn't seem to be having a significant impact on the British pound's performance against its rivals. As of writing, the GBP/USD pair was up 0.15% on the day at 1.3583.