Will 4.50% be the peak?

With the financial markets and other forecasters having come round to our long-held view that Bank Rate will rise to 4.50%, the real question is whether a 25 basis points rise to 4.50% at the Monetary Policy Committee meeting on Thursday 11th May will be the last in this cycle. We think there’s a decent chance it is, although if the economy and domestic inflation prove more resilient than we expect rates may peak at 4.75% or 5.00%.

UK Drop-In (11th May): Join our UK and Markets teams for this special briefing on the Bank of England’s May decision at 10:00 EDT/15:00 BST on Thursday, 11th May. Register Now.