Bank of England poised to continue hiking rates as inflation looms large

MPC meeting this week

Following a string of high inflationary figures, markets have raised their expectations for the UK terminal rate from 5% a month ago to 5.75%.

Ahead of the Bank of England Monetary Policy Committee meeting on Thursday (22 June), markets seem set on expecting at least a 25bps hike. David Goebel, associate director of investment strategy at Evelyn Partners, noted: "It was only a few weeks ago that rate watchers were calling an imminent peak for the bank rate." However, following data showing that private sector wage climbed to 7.6% in the three months to April and core inflation rising to 6.8% in April, expectations have shifted radically. ECB meets expectations with 25bps hike Katharine Neiss, chief European eco...