BoE points to another 25 bps rate hike next week – UOB

Lee Sue Ann, Economist at UOB Group, suggested the BoE could raise the key policy rate by another 25 bps at its event on June 16.

Key Quotes

“Previously, we had held a cautious view of the BOE pausing once the policy rate reaches 1.00%. However, the last voting outcome by the MPC has turned out a little less dovish than our expectations, and we thus now look for another 25bps hike in Jun.”

“As for asset sales, we will likely have to wait until at least then for some guidance, though we expect sales to begin in 4Q22 at GBP5bn a month.”