BoE’s Haskel Wants To Lean Against Risk Of Inflation Momentum, Terminal Pricing Ticks Higher

BoE-dated OIS sits little changed to a little above Friday’s closing levels as markets digest the latest hawkish offerings from MPC member Haskel, via an interview with The Scotsman newspaper.

• Haskel noted that “my own view is that it’s important we continue to lean against the risks of inflation momentum, and therefore that further increases in interest rates cannot be ruled out. As difficult as our current circumstances are, embedded inflation would be worse.”
• Haskel had already outlined his support for further rate hikes in recent weeks.
• The strip continues to price in just over 100bp of additional hikes in the current tightening cycle, including chances of a >25bp hike over the next few meetings.
• An address from BoE’s Mann will cross later today. The hawk will speak on the UK economy and policy.
• Further out, the latest labour market report is due on Tuesday, while the monthly GDP reading and activity indicators for April will hit on Wednesday. Friday then sees the release of the latest BoE/Ipsos inflation survey results.
• Beyond today, the BoE speaker slate sees comments from Governor Bailey, Dhingra and Greene (TSC confirmation hearing) on Tuesday, before Cunliffe speaks on Thursday.