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UK VIEW: The National Institute of Economic and Social Research (NIESR) said
that it expects the Bank of England to start a rate hiking cycle this Thursday
with interest rates reaching 2% by 2021.
- "Now that we have lowered our productivity growth forecast, we have also
raised the interest rate (path). There is a risk of overheating," NIESR
economist Amit Kara said.
- "We expect the Bank of England to raise the policy rate by 25 basis points
this month and again every six months until Bank Rate reaches 2 per cent," NIESR