BOE Vote Split, Forward Guidance, Likely to Indicate Prospect of Future Rate Rises
Dow Jones
Yesterday
1449 GMT - Investors should focus on the vote split at the Bank of England rate decision on Thursday for a signal on the possibility of a BOE interest-rate increases in future months, Peel Hunt's Kallum Pickering says in a note. Additionally, communication by monetary policy committee members could provide clues, he says. If BOE Governor Andrew Bailey doubles down on his comments about second-round inflation effects being subdued, this could lower expectations of BOE rate increases, Pickering says. However, if the governor indicates higher inflation expectations then markets will see that as an endorsement of current market pricing, he says. Investors fully price in a total of four BOE rate increases by mid-2027, LSEG data show.
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