Analysts price in second consecutive 50bps hike by BoE as recession looms

59% according to Reuters poll

Analysts are pricing in a second consecutive 50 basis points base rate hike by the Bank of England at its next monetary policy meeting in September, according to a Reuters poll.

Out of 51 respondents, 59% bet the central bank would sanction a 50bps increase, taking the base rate to 2.25%, while 41% were pricing in a hike of 25bps. Last month, the central bank enacted its largest increase since it started tightening monetary policy in December, and the largest hike to rates in 27 years. Analysts continue to price in rate increases despite data indicating the economy contracted 0.1% last quarter. The bank's most recent forecasts put the UK in a recession in the fourth quarter of this year, with the economy contracting throughout next year and through until 2024...