Skip to main content

Joining the 50bps club

The further tightening in the labour market, the additional loosening in fiscal policy and more evidence that the weaker activity outlook is not reducing price and wage expectations lead us to believe that the Bank of England will raise interest rates by 50 basis points (bps), from 1.00% to 1.50%, at the policy meeting on Thursday 16th June. Even if we’re wrong (it is a very close call) and the Bank sticks to a 25bps hike, recent developments support our view that rates will rise to a peak of 3.00% next year. Clients can question our thinking during our live Drop In webinar on Tuesday 14th June at 3pm BST. (Register here.)

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access