BOE seen hiking rates by 25 bps in May – Reuters poll

According to the results of the Reuters poll of economists conducted this month, a majority of them expected the Bank of England (BOE) to hike the benchmark interest rates by 25 bps at its May monetary policy meeting.

Key Findings:

69 of 76 economists expect the Bank of England to lift the bank rates 25 basis points to 0.75% on May 10.

Median see a 20% chance of disorderly Brexit (unchanged from March).

Median 10% chance UK recession this year (vs 11% last month).

UK economy to expand 1.5% in 2018 and 2019 (unchanged from March).

37 of 60 to said the Bank of England will lift bank rate to 1% or higher by the end of the 1st quarter next year.  

The median forecast shows the rate at a still historically low 1.25% in the final month of 2019.