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The Bank of England looks set to deliver a 25....>

UK
UK: The Bank of England looks set to deliver a 25 basis point rate hike
following the Monetary Policy Committee's (MPC's) Super Thursday policy
announcement, alongside publishing an estimate of the equilibrium real policy
rate for the first time. It would be a big surprise if there was no hike or if
its mid-point equilibrium rate, or r*, estimate was below -0.5%, that is 1.5%
for nominal Bank Rate. The MPC's new guidance is that an unwind of quantitative
easing (QE) will kick-in when Bank Rate is around 1.5% and if its r* estimate
were to be below this it would suggest this tightening cycle may end with no
unwind. See MNI Main Wire at 0925BST for full story or contact us for access.

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