BoE: Interest rate hike could come sooner than expected – UOB

Economist at UOB Group Lee Sue Ann reviews the latest BoE monetary policy meeting.

Key Takeaways

“At its September meeting, the Bank of England (BOE) judged that the existing stance of monetary policy remained appropriate…”

“In the latest statement, the BOE noted that the ‘modest tightening’ in policy foreseen over their horizon in August, ‘some developments during the intervening period appear to have strengthened that case, although considerable uncertainties remain’.”

“We have moved forward our rate hike forecast timing to end-2022 from mid-2023 to reflect a key change in the minutes, that all MPC members ‘agreed that any future initial tightening of monetary policy should be implemented by an increase in Bank Rate, even if that tightening became appropriate before the end of the existing UK government bond asset purchase programme’.”