Bank of England

The Bank of England's basic interest rate should be set as high as 10% given the scale of UK inflation, according to a major insurer.

Goldman Sachs, Deutsche Bank raise Bank Rate forecasts, but NatWest Markets say they are misreading the Bank of England's guidance.

Bank of England Chief Economist Huw Pill becomes the second member of the Monetary Policy Committee to mention the value of Pound Sterling when fighting inflation.

The Bank of England's Catherine Mann says the British Pound is at risk of falling further and pushing UK inflation even higher unless a more activist approach to interest rate management is adopted.

Fears of a 1970's-style general strike are rising and if the government and employers eventually yield then the public sector could see a major wage impulse over coming months.

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.