“By lowering the inflation spike, we see that the government’s cap on energy prices allows the BoE to avoid increasing the pace of increases. But more fiscal stimulus means the BoE will have to raise rates in general,” Bank of said. America in an obligation to customers.
Bank of America expects the BoE to raise interest rates by half a percentage point next week and in its next two meetings, followed by further quarter-point hikes in 2023, bringing rates to 4% next August.
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