UBS forecasts that the BOE will hike rates by May this year

UBS strategist, John Wraith, brings forward initial forecasts and says that BOE will raise rates during the May meeting

Previously, they predicted no further rate increases through to 2019. But the latest forecast is "explicitly conditional" on the UK government reaching an agreement with the EU, the report said.

"To be clear, while we are now revising our forecast to incorporate another rate hike we did not previously anticipate, we continue to believe the MPC took a risk with the U.K. economy by raising rates in November, and would be compounding this by doing so again in May", Wraith argues.

At the same time, they have also revised upwards their growth outlook for the UK - and sees the economy growing 1.4% in 2018 and 1.2% in 2019, compared with the 1.1% previously for both years.

That's probably the boldest call on the BOE hiking rates that we have so far. Here's the OIS market pricing for BOE rate changes this year:

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