BOE CEO Mark Carney may have everything needed to raise interest rates as much as the market expected. After Carney failed to convince voters in BoE to raise interest rates in August, rapidly rising inflation in the country could prompt members to do so very soon. This will be a sharp contrast between the previous decision of the bank when the Brexit warnings and growth forecasts overshadowed Carney's assessment.
On Tuesday, the GBP recorded a 1% growth, which is the highest in a year, with the potential for interest rate increase in February 2018 reaching 51% from 41% on Monday.
What are the expectations for the vote on Thursday?
Economists expect Michael Saunders and Ian McCafferty to keep their votes on interest rates, and the commission as a whole will change the tone on monetary policy towards tightening.
Andy Haldane is expected to seek to withdraw part of the BoE's additional incentives granted last August and will hold that the risks of too late tightening monetary policy are on the rise.
Despite the rumors of policy tightening, most market analysts are of the opinion that uncertainty surrounding Breckitt will continue to exert influence and BOE will be more conservative in its decision.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Bloomberg: Soaring Inflation May Raise BOE Rate-Hike Warning This Week
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