Free Trial

HSBC: Now see 1.25% by August

BOE
  • HSBC updated its BOE view yesterday and now expects an extra 25bp hike by August to see Bank Rate at 1.25% (25bp hiks in March, May and August). "We can see risks in both directions."
  • "The more material change is to our inflation forecasts. This reflects three things: the 54% increase to the Ofgem energy price cap, the latest energy futures curves and higher core inflation due to the labour market... we now see CPI inflation peaking at 7.2% y-o-y in April and coming down only to 4.4% by end-2022 and 2.1% at end-2023 (previously: 3.2% and 1.8% respectively)."
  • "We also now expect slower GDP growth in 2022 (4.0% vs 4.5%) and 2023 (1.6% vs 1.8%)"

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.