13 Feb 2015
BoE to start hiking in Q3/Q4 2015 – Danske Bank
FXStreet (Edinburgh) - Lars Christensen, Chief Analyst at Danske Bank, expects the ‘Old Lady’ to start its hiking cycle towards Q3/Q4 2015.
Key Quotes
“Bank of England’s inflation report released yesterday was relatively mixed with a quite dovish short-term focus on inflation but also a more confident view on the medium-term growth outlook”.
“All in all, more hawkish compared to November, suggesting that a rate hike in 2015 is still very likely”.
“We continue to call for a hike in August but stress that risks are tilted towards a hike later in Q3, or possibly in Q4”.
“The market now prices in the first increase in interest rates in January 2016 and thus we see more upside potential in UK rates and look for a lower EUR/GBP in the coming months”.
Key Quotes
“Bank of England’s inflation report released yesterday was relatively mixed with a quite dovish short-term focus on inflation but also a more confident view on the medium-term growth outlook”.
“All in all, more hawkish compared to November, suggesting that a rate hike in 2015 is still very likely”.
“We continue to call for a hike in August but stress that risks are tilted towards a hike later in Q3, or possibly in Q4”.
“The market now prices in the first increase in interest rates in January 2016 and thus we see more upside potential in UK rates and look for a lower EUR/GBP in the coming months”.