According to the latest Reuters poll of economists, the Bank of England (BOE) remains on track for a 50 basis points (bps) rate hike in September before returning to a more regular 25 bps increase in November.
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30 of 51 – said the BoE would take Bank Rate to 2.25% on Sept. 15 by adding 50 basis points. The other 21 suggested a more modest 25 basis point lift to 2.00%.
A large majority of those polled said the Bank would slow the pace in November to 25 basis points.
For the December meeting, 18 economists said the Bank would add another 25 basis points while 25 said it would pause.
The median forecast suggested borrowing costs would end the year at 2.50%, where they would stay until a cut in 2024.
UK economy to grow 3.5% in 2022, 0.2% in 2023 vs. 3.4%; 0.6% in July poll.
Inflation will reach 11.4% in the fourth quarter, higher than the 10.2% predicted last month, before slowing.