Market news
17.03.2023, 20:20

BoE: A 25 bps next week not fully priced in interest rate markets – Rabobank

Next Thursday, the Bank of England (BoE) will announce its decision on monetary policy. A 25 basis point rate hike to 4.25% is expected. Analysts at Rabobank also see a quarter-point rate increase and warn that such scenario is not fully priced in the interest market, “which indicate that the chance of a hold has increased following the collapse of SVB.”

Fear, uncertainty and doubt

“The 2007-2008 financial crisis taught us that even small failures can lead to significant problems. While SVB's poor liquidity risk management was the underlying cause of its downfall, the shift from a 'lower for longer' to a 'higher, possibly for longer' interest rate regime acted as the trigger. This raises the question of whether other financial institutions could eventually face a similar situation, fuelling the infamous trio of fear, uncertainty and doubt.”

“We would therefore expect the hiking cycle to continue at a more moderate pace of 25bp at next week’s meeting. That would lift Bank rate to 4.25%. With external members Tenreyro and Dhingra surely not voting for an increase, five out of seven remaining policy makers would have to vote for such a hike. Indeed, it wouldn’t even come as a surprise if we’d see a three-waysplit, with Tenreyro and/or Dhingra even voting for a cut.”

© 2000-2023. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location