Counting down to the Central Bank of England (BOE) policy meeting, various expectations arose from investors about an interest rate hike.
For the record, investors are now expecting that the BOE will raise its interest rates by 25 basis points to combat the UK’s increasingly ‘crazy’ inflation surge.
The BOE predicted in December that inflation would peak around 6% in April 2022, but the latest data shows the inflation surge has hit 5.4%, the highest in nearly 30 years.
This indirectly reinforces investors' expectations to see another rate hike today.
However, investors will likely also be looking for deeper clues from Governor Andrew Bailey’s statement on the possibility of further rate hikes.
In addition, investors will also be scrutinizing the latest forecast from the BOE on inflation as an indicator of the next interest rate setting, which is likely to reach 1.50% by the end of this year.
What are your expectations for the BOE decision tonight? Will it meet market forecasts or vice versa?
