Deutsche Bank said on Tuesday it expected the Bank of England to raise interest rates by half a percentage point at its August meeting.
Data released earlier in the day showed a key measure of British wages rising at the joint-fastest rate on record.
"For now, evidence of more persistent wage pressures will prompt the MPC to raise interest rates," Deutsche hunger in a note, referring to the rate-setting body BoE. "A second consecutive 50-bp hike now looks more likely than otherwise".
Deutsche continued, they chose to change the forecast for August, and now expect a 50-bp increase at the next BoE meeting, bringing the Bank Rate to 5.5%.
Deutsche analysts said they kept their terminal rate forecast unchanged at 5.75%
