Inflation concerns and also the milder impact of Omicron cited as reasoning for the expected hike.
One of the comments:
- "As we head into the spring I imagine confidence will be supported by the fact COVID-19 cases will be somewhat lower and we have an entire economy of people who want to go out and spend money," said George Buckley at Nomura. "It suggests we will see an increase in consumer spending, particularly services spending, as we stop buying stuff and start buying experiences."
- “Inflation has surprised higher, again, and that’s only likely to increase the temptation for Bank of England policymakers to hike rates for a second consecutive meeting this February,” said James Smith at ING.