BoE Expected to Hold Rate at 3.75% with Hawkish Dissent, Says SocGen
Societe Generale expects the Bank of England to keep its Bank Rate at 3.75% at the upcoming meeting, with some policymakers likely to dissent in favor of a hike. Easing inflation and a loosening labour market are offset by higher energy prices.
Societe Generale strategists expect the Bank of England to leave its Bank Rate unchanged at 3.75% at the next policy meeting, though some members may push for tightening.
Easing inflation expectations and signs of a loosening labour market support the case for a hold, but higher energy prices and government income dynamics introduce upside risks to the outlook.
The overall assessment points to an extended pause in the BoE’s rate cycle, with the balance of risks keeping policymakers cautious.
Source: FXStreet Forex News