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Credit Suisse: Three more hikes in 2022 and three 2023 hikes to 2%

BOE
  • “We now think the next 25bps hike would be in March 2022, sooner than our previous base case of May 2022. We expect three more 25 bps hikes in 2022, i.e., in March, May and August 2022, compared to our previous base case of two more hikes.”
  • “Above-target inflation lasts throughout 2022 in our forecasts. The drop in inflation is likely to slow the hiking cycle, but not stop it. In 2023, we expect the BoE to continue to hike rates and expect three hikes in 2023, such that rates reach 2.0% by year-end 2023, higher than 1.5% previously.”

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