Nomura say to expect a 25 bps rate increase from the Bank today, followed by additional rate increases in August and September.
- Nomura say there was a chance the Bank was going to do nothing in June, but that evaporated due to last week's positive labour market report, which also heightened the risk of a 50 basis point hike.
- Wouldn't be surprised if there was a three-way split in the votes:
- two for no change,
- six for an increase of 25 basis points,
- and one for an increase of 50 basis points
- It's possible that the MPC will make statements concerning policy transmission delays or more direct statements indicating that the majority of the MPC's work has been completed in an effort to wiggle down market pricing.
Earlier previews:
- Bank of England Monetary Policy Committee preview: Where to for GBP? 3 scenarios.
- JP Morgan preview Bank of England rate hike coming today: BoE have to create a recession
