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Rabobank: Expect Bank Rate to end 2022 at 0.50%

BOE
  • The “surprise announcement suggests the MPC bottled it in November. However, the sombre economic outlook makes this hike even more hostage to fortune.”
  • “Along with the Fed’s pivot to inflation fighting, it illustrates that virus risks are not the central banks’ primary concern anymore. We do, however, hold on to our forecast of a much less aggressive tightening cycle than what is currently priced in front-end rates. We forecast another 25 bps rate hike in the next few months, but expect Bank rate to end the year at 0.50%.”

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