By deploying economic policies and Brexit battles in the fight for his political life, Boris Johnson is inadvertently asking the Bank of England to work harder to quash inflation. As it happens, we think the Bank of England may join other central banks in hiking interest rates by 50 basis points, from 1.00% to 1.50%, at next Thursday’s meeting. In contrast, the markets are pricing in only a 25% chance of a 50 basis point hike and no other analysts are forecasting 50 basis points.
BoE Preview Drop-In (14th June, 10:00 ET/15:00 BST): Just ahead of the June MPC decision, we’ll explain in this 20-minute briefing why we’re even more convinced that UK rates will peak at an above-consensus 3% next year. Register now.
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