Researchers at UOB Group now sees the BoE hiking once during this year, and most likely the announcement could come at the August meeting.
Key Quotes
“Following the BoE’s commentary, the market is now essentially 50/50 priced for a rate hike at the next Inflation Report meeting on 2 August”.
“As highlighted, the latest decision to stay on hold is likely a delay, rather than abandonment, of the BoE’s plans to gradually normalize monetary policy”.
“That said, we maintain our view of just one rate hike in 2018. As for the timing, we think a rate hike in August is contingent on growth bouncing back and negotiations on the Brexit front staying positive”.
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