Bank of America on Bank of England monetary policy following the +25bp rate hike last week.

ICYM the hike news:

BoA now:

  • 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.

BoA caveat:

  • Our forecast is sensitive to the data flow, especially the next inflation reading and any impact on credit conditions from recent banking sector turmoil.
boe Bank of England