Although we anticipate that the first interest rate hikes in both the US and the UK will come around the same time, towards the end of the first quarter next year, we expect the subsequent pace of tightening to be more gradual in the UK. Indeed, by the end of 2016, we anticipate that the UK Bank Rate could still be as low as 1.5%, whereas by then we expect the US fed funds rate to be 3%.
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