Bank analysts have heeded remarks from Bank of England Governor Bailey over the weekend on rate hikes:
- BoE Gov Bailey said despite inflation being temporary will act if a risk to medium-term inflation & expectations
Justin added more on Bailey, noting especially the caveats:
Goldman Sachs forecasts for the BoE centre on a November hike, followed by another in February and then in May.
ING says its line ball between a November hike and a February hike but thinks it a November rate hike to come.
JP Morgan meanwhile say Bailey is attempting to signal he has the support of the bank's MPC to hike sooner rather than later. JPM are favouring a November hike also.
Dates for the November and February meetings are highlighted below: