BoE To Raise Rates By 25bp In Aug, But 50 A Close Call (RTRS Poll)

"The Bank of England (BoE) will likely shy away from a bigger interest rate rise in August and instead stick to the more modest 25 basis point increases it has been delivering, but it is a very close call, a Reuters poll of economists found."

• "The BoE is grappling with four-decade-high inflation, driven in large part by global pressures related to supply-chain disruptions and high energy prices. That has become a cost of living crisis, now pushing up the chances of recession."
• "Britain's central bank was the first among its major peers to begin hiking rates in the current cycle, lifting Bank Rate five times since December from its pandemic low of 0.10% to where it currently sits at 1.25%."
• "A slight majority in the July 13-25 Reuters poll - 29 of 54 economists - said the BoE will stick to 25 basis points at its next meeting on Aug. 4, to 1.50%. The remaining 25 forecast 50 basis points, which would put it more in line with its peers."
• "Among gilt-edged market makers, the narrow split was reversed. Of the 15 who responded, eight forecast a 50 basis point hike, while seven saw a 25 basis point hike."
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