Bank of England

The Bank of England (BoE) raised its interest rate again this week and gave new guidance that appears to leave everything rested on economic data emerging from the UK in the months ahead, energy prices and the response of companies and households to October’s uplift in the ‘energy price cap.’ 

UK-based lender Barclays have raised their forecast profile for the Bank of England's key interest rate while warning a 50bp hike in August is now likely.

GBP is proving to be a slippery customer in the wake of the Bank of England's decision to raise interest rates again, initially falling on the 25 basis point hike announcement and then rising sharply.

The Pound to Euro rate enters the new week with its back against the ropes and the outlook for it hinged upon how the European Central Bank’s (ECB) handles its besiegement at the hands of hawkish financial markets this Thursday.

The Bank of England (BoE) could well need to lift interest rates further in the months ahead, a member of the Monetary Policy Committee has said, in order to ensure that a near double-digit inflation rate eventually returns to the coveted target of two percent over the medium-term. 

The Bank of England interest rate outlook is poorly understood within and around the markets, which is one reason why Pound Sterling has been the subject of increasingly bearish analyst commentary this week, although Pound Sterling Live has no such difficulty understanding BoE communications.

"We think that recent events have demonstrated that the BoE’s overly complex framework – designed during an era of low and stable inflation – is not fit".

The Deputy Governor of the Bank of England said further interest rate rises are needed as there is a risk the UK jobs market proves more resilient than the Bank's current expectations.

"To put it politely, the closer we look into the report, the greater our disappointment with the MPC."

"The relevant question is whether or not the BoE’s headline-grabbing projections are plausible... in our view, the answer is that they probably are not." - Berenberg.

Michael Saunders has once again reiterated the case for a bold approach to raising interest rates in an effort to stave off surging inflation.

"I expect the market continues to price in too many hikes" - Henry Occleston, Macro Hive.

"Further increases in long-term inflation expectations or a further sharp GBP depreciation could lead to a faster hiking pace in coming months" - Goldman Sachs.

The Pound to Euro rate slumped and was left testing a notable level of technical support on charts after the Bank of England (BoE) appeared to stoke doubt in the market about widely held assumptions relating to its interest rate.

The British Pound has come under notable pressure after the Bank of England raised interest rates but warned the economy was due to slow sharply over coming months.

A falling Pound Sterling boosts UK inflation and is therefore a potential concern for the Bank of England as it goes about its business of setting interest rates and trying to stabilise inflation.

The Bank of England will meet the market's expectation and hike interest rates to 3.0% by 2023, say Capital Economics.

The Pound to Dollar rate tumbled from the outset in the final session of the week with a dive below 1.30 bringing a major level of support near 1.2837 on the charts into view after UK economic data forced financial markets to reconsider the outlook for the Bank of England (BoE) Bank Rate.

The prospect of a 50 basis point hike at the Bank of England in May has been reignited by Catherine Mann, a member of the Bank's Monetary Policy Committee.

Pound Sterling was left trading with a limp against the Euro, Dollar and other currencies early on this week after Bank of England (BoE) Governor Andrew Bailey reminded financial markets of what is increasingly an uncertain outlook for Bank Rate.