The Bank of England has hiked rates by another 25 basis points. Economists at TD Securities expect further increases in June and possibly in August.

Not done yet

“As widely expected, the MPC voted to raise Bank Rate by 25 bps today to 4.50%. The vote of 7-2 was a repeat of March's, with Tenreyro and Dhingra voting for a hold for the fourth consecutive meeting, and forward guidance was left unchanged. Inflation and GDP projections were revised up substantially.”

“Overall, this sounds like an MPC that will continue to be data dependent moving forward, with the focus remaining on wages and services inflation. As such, we continue to expect a final 25 bps hike at the June meeting to bring Bank Rate to a terminal of 4.75%. That said, given the hawkish tone the MPC gave off today, risks are skewed to an additional 25 bps hike in August if the data continues to surprise to the upside.”