- 52 of 54 economists said BOE will raise bank rate by 50 bps next week
- Only 2 economists expect a 75 bps rate hike next week
- Median chance of 85% that UK economy headed towards a recession within a year
- Majority of respondents see the recession as one that would be long and shallow
- The median for the bank rate peak is seen at 4.25%, forecasts ranged between 3.50% and 4.75%
This will follow the 75 bps rate hike in November here. In commenting on the forecasts above, HSBC says that:
"We think it will be a 50 bps rise, taking the bank rate to 3.50%, with risks weighted towards a larger 75 bps move, rather than a smaller 25 bps one."
