If our forecasts that Bank Rate will rise to 3.00% and that high inflation will prevent the Bank of England from cutting interest rates during the coming recession both prove right, then 10-year gilt yields may yet reverse the bulk of their recent fall. Meanwhile, if our 2022 GDP growth forecasts for the UK (3.2%) and Germany (1.3%) are anything to go by, then perhaps England will beat Germany 3-1 in Sunday’s final of the women’s Euros.
Bank of England Drop-In (4th August, 10:30 ET/15:30 BST): Join our post-MPC, 20-minute online briefing to find out why we think UK rates will rise by more than most expect, despite a looming recession. Register now.
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