The Bank of England has recently published the finding of its latest Market Participants Survey that showed the median expectation for peak bank rate stood at 4.25%.

Additional takeaways

"Bank rate expected to peak in March 2023."

"29.8% chance of cut to bank rate within the next year."

"Participants see 76 bln sterling of QE unwind from November 2022-September 2023, 80 billion sterling unwind from September 2023 to September 2024."

"CPI seen at 8.3% in 6 months, 5.5% in one year, 3% in 2 years, 2% in 3 years."

Market reaction

GBP/USD extended its recovery after this publication and was last seen posting modest daily gains at 1.2193.