The BoE raised Bank Rate 50 bps to 5.00% at today's meeting. Economists at TD Securities analyze EUR/GBP after the announcement.
More hikes ahead
The MPC hiked 50 bps in a 7-2 vote against the universal consensus of a 25 bps hike. The text of the decision was largely unchanged and points to further hikes ahead.
We now expect three more 25 bps hikes in Bank Rate, taking it to 5.75% in November. As policy tightening catches up to the real economy, a recession is likely to emerge this winter, with cuts coming in Bank Rate from February 2024.
Rates are reaching a point where they will have a negative impact on growth, which is feeding back into a weaker currency.
The 50 bps hike plays well into our EUR/GBP topside view, where we could see a push towards the top-end of the recent range back near 0.89 in the months ahead.
风险提示：本文所述仅代表作者个人观点，不代表 Followme 的官方立场。Followme 不对内容的准确性、完整性或可靠性作出任何保证，对于基于该内容所采取的任何行为，不承担任何责任，除非另有书面明确说明。
暂无评论，立马抢沙发