The BoE could raise the policy rate at the August meeting, suggested Economist Lee Sue Ann at UOB Group.

Key Quotes

“The BoE, in Feb, imposed back-to-back interest rate hikes for the first time since 2004 and began the process of quantitative tightening.”

“We had pencilled in two rate hikes in 2022, including Feb’s 25 bps hike. Subsequently, we are expecting another 25 bps hike in Aug, which would bring the Bank Rate to 0.75% by end-2022.”

“Although we think that market expectations of rate hikes are overdone, we acknowledge the risk of more hikes this year.”