One last hike

We think that a 25 basis point (bps) rise in interest rates, from 5.25% to 5.50%, at the Bank of England’s policy meeting on Thursday 21st September will be the last hike in this cycle and that sticky inflation will force the Bank to keep rates at their peak until late in 2024. But when rates are eventually cut, we suspect they will be reduced further and faster than investors expect.

We’ll be discussing September’s Fed, ECB and Bank of England policy decisions in a Drop-In at 3pm BST on Thursday 21st September. (Register here.)