Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Bank of America sees BoE raising rates to 4% by Aug 2023

Published 09/13/2022, 06:09 AM
Updated 09/13/2022, 06:12 AM
© Reuters. FILE PHOTO: Workers are silhouetted as they walk past the Bank of England, in London, Britain, August 8, 2022.  REUTERS/Toby Melville

LONDON (Reuters) - Bank of America (NYSE:BAC) revised up its forecast for the peak in Bank of England interest rates to 4% on Tuesday from a previous estimate of 3.25%, saying the central bank would need to tighten policy more to offset fiscal stimulus from Prime Minister Liz Truss.

"By lowering peak inflation we see the government's energy price cap allowing the BoE to avoid increasing the pace of hikes. But more fiscal stimulus means the BoE will have to hike more overall," Bank of America said in a note to clients.

Bank of America expects the BoE to raise interest rates by half a percentage point next week and at its following two meetings, and then to make further quarter-point rate rises in 2023, taking rates to 4% by August next year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.