The further strengthening in domestic inflationary pressures and exceptional tightness in the labour market suggests there is a strong case for the Monetary Policy Committee (MPC) to opt for an aggressive interest rate hike at its next policy meeting on Thursday 3rd November. It’s a close call as to whether the MPC will deliver a 75 basis point (bps) or an 100bps hike. On balance, we think that the MPC will go for 100bps, taking Bank Rate from 2.25% to 3.25%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services