Bank of America on Bank of England monetary policy following the +25bp rate hike last week.
ICYM the hike news:
- We expect no further rate hikes
- We see no cuts until 2024
- The minutes of the BoE's policy raise upside risks to our terminal rate call of 4.25%. They left enough optionality to hike again but we stick to our call of no more hikes.
- Our forecast is sensitive to the data flow, especially the next inflation reading and any impact on credit conditions from recent banking sector turmoil.