Bank of England

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. 

The selloff in Pound Sterling and rates markets following Thursday's Bank of England policy meeting testifies to the scaling back of investor expectations for the number of additional interest rate rises due over coming months.

The British Pound fell sharply in reaction to the Bank of England decision to raise interest rates at a third consecutive meeting.

The Bank of England could keep interest rates unchanged on Thursday, citing the war in Ukraine, in what would amount to a signifiant downside surprise for the British Pound.

Appetite for GBP dampened after BoE testimonies as BoE Gov warns market “not to get carried away”.

"Ramsden eased back slightly on his recent hawkish stance," says a note from TD Securities' global strategy team. "He favours a 25bps hike in March rather than 50bps."

A squeeze on home owners from rising interest rates will become apparent by the second half of 2023 says NatWest Markets, and this will prompt the Bank of England to rein in rate hikes.

The Bank of England looks all but set on a path to raise Bank Rate to just above 1.0% in 2022, according to its Chief Economist.

The Bank of England's basic lending rate could sit close to 1.50% by the time 2023 gets underway.

A strong labour market and rising wages will mean the Bank of England will have to keep pushing interest rates higher says Credit Suisse, even as UK inflation rates begin to fall later in 2022.

The 'hawkish' hike saw Pound Sterling rise across the board before Governor Andrew Bailey cooled the excitement.

The newest member of the Bank of England's Monetary Policy Committee has urged her colleagues to take decisive action in the near-term to lean against inflation.

Bank of England Governor Andrew Bailey told UK lawmakers he and colleagues remain concerned with the trajectory of UK inflation, and that they stand ready to act.

Bank Rate could reach 1.25% by the end of 2022 says a leading independent economics research house.

"The market had largely priced out a hike. This a surprise" - Mizuho.