On April 20, analysts at Standard Chartered Bank predicted that the Bank of England would raise interest rates by 25 basis points in May.
“Unexpected UK labor market and inflation data this week put pressure on BoE policymakers to raise rates. As the odds of another 25bp hike in May solidified this week, we adjusted our view accordingly , It is currently expected that the May meeting will raise interest rates to 4.50%, and the previously expected interest rates will remain unchanged. We will also increase the benchmark interest rate forecast by the end of the year to 4.50% (currently 4.25%).”
“After May, there is a possibility of further interest rate hikes, but we believe that the MPC will make a decision on a meeting-by-meeting basis, and a lot will depend on changes in economic data from month to month. Therefore, we do not agree with the market’s current view , that is, by the end of this year, the cumulative interest rate may be raised by 75 basis points.”