Investors' Expectations of BOE Rate Rises Look Excessive
Dow Jones
Oct 08
0759 GMT - Markets' expectations of the Bank of England interest-rate rises look overdone, Berenberg's Andrew Wishart says in a note. High energy prices have raised inflation concerns, leading investors to fully price in four quarter-point BOE rate increases by September 2027, LSEG data show. The BOE may not need to raise rates aggressively as high energy bills and elevated interest rates are likely to limit consumer demand, he says. "We expect a solitary 25 basis-points hike in November followed by a return to policy loosening in the fourth quarter of 2027."
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