Bank of England to hoist interest rates to 5.75 per cent as experts warn UK inflation is out of control
- On June 15, 2023
- By GrowthInvest Marketing
The Bank of England will have to hike interest rates to their highest level since July 2007, the eve of the financial crisis, in a sign that markets think the UK has the worst inflation problem in the rich world.
Traders ratcheted up bets on how high Bank Governor Andrew Bailey and the rest of the monetary policy committee – the nine-strong group that set interest rates in Britain – will have to send borrowing costs this morning after a hotter than feared UK jobs report signalled inflation risks hanging around for longer.
Financial markets now think borrowing costs could leap to a high of 5.75 per cent, up more than a percentage point from their current level of 4.5 per cent.
Before this morning’s numbers from the Office for National Statistics (ONS), which showed wages are rising at their fastest pace on record outside the pandemic, traders reckoned the peak would be at least 5.25 per cent.
The expected rate path has swung up sharply over the last month due to a string of robust data suggesting the UK economy is running extremely hot despite the Bank already raising borrowing costs twelve times in a row.
Last month, the ONS said inflation fell to 8.7 per cent in April from 10.1 per cent, a slower deceleration projected by the Bank and City. That’s also the highest rate in the G7.
GET IN TOUCH!
MAIL US
enquiries@growthinvest.comCALL US
020 7071 3945FOLLOW US ON
Throughout our site you will find links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, we cannot take responsibility for pages maintained by external providers.
GrowthInvest is a trading name of EIS Platforms Limited. EIS Platforms Limited (FRN: 694945) is an appointed representative of Sapphire Capital Partners LLP (FRN:565716) which is authorised and regulated by the Financial Conduct Authority in the UK.
All rights reserved 2023 @ growthinvest