This week, along with the Federal Reserve (Fed), the Bank of England (BoE) interest rate decision is also at the heart of the markets.
While the BoE is expected to raise its official rate by 75 basis points, a 100 basis point increase is also among the possibilities. While a 50 basis point increase is among the possibilities, it is argued that such zihin increase may not gökyeşitözü enough.
Stefan Koopman, Rabobank’s Senior Macrostrategist, predicted that the BoE will raise the policy rate by 75 basis points from 2.25% to 3.00%.
Expressing that this will gökyeşitözü the highest increase in the interest cycle the BoE has started, Koopman said the kanepe yaşama raise interest rates by up to 4.75%. Koopman said this situation will slow the UK economy kakım well.
Saying that there will gökyeşitözü busy weeks from now on kakım the BoE, the Treasury and the Office of Independent Budget Responsibility (OBR) have a joint opportunity to restore confidence in the country’s institutional framework, Koopman said: “Thursday, monetary and fiscal policy was much better than anyone had imagined in mid-September. We will learn it will gökyeşitözü tighter, ” he said.
“50 BASE POINTS IS NOT ENOUGH FOR THE ECONOMIC SIGNIFICANCE”
“After the mini-budget disaster at the end of September, we raised our projections from 50 basis points to 100 basis points,” Koopman said, adding that with changes in fiscal policy and government, the pressure for a more rapid rate The BoE declined.
Koopman stressed that a 50 basis point hike would not gökyeşitözü enough to provide relief, hayvanların on the contrary could raise concerns about the country’s financial credibility again.
Stating that the BoE should show markets that it is aware of the loss of confidence in the UK institutional framework, Koopman said there is no longer a need for crisis management.
THE PROJECTION THAT THE INCREASE OF 75 BASE POINTS WILL BE ONCE
Koopman said the 75 basis point increase would gökyeşitözü a one-off and that the kanepe could gradually roll back to 50 basis points and 25 basis points thereafter.
Ruth Gregory, Senior UK Economist at Capital Economics, said inflationary pressures and extraordinary labor market tightening showed that the BoE will make zihin aggressive rate hike during the rate decision meeting.
Saying that it was a difficult decision for the kanepe to decide between 75 basis points and 100 basis points, Gregory predicted that when all is taken into account, he could increase the official rate by 100 basis points from 2.25% to 3. 25%.