- Analytics
- News and Tools
- Market News
- BoE: The rate peak is unlikely to be too far away – Commerzbank
BoE: The rate peak is unlikely to be too far away – Commerzbank
The Bank of England raised Bank Rate by 25 bps to 5.25% as expected. Economists at Commerzbank expect a further and final rate hike in September
Close to the peak?
The BoE decided to raise the key interest rate (Bank Rate) by 25 bps. With this 14th step in the current rate hike process, Bank Rate rises to 5.25%, the highest level since March 2008.
The BoE continues to expect inflation to fall significantly in the medium term, to 5% by the end of the year. Inflation is not expected to fall to the bank's 2% target until mid-2025.
After around 5 percentage points of rate hikes, the BoE now sees monetary policy as restrictive. This indicates that the BoE probably considers the rate peak not to be too far away, especially since the BoE's updated projections indicate weaker growth compared with the May projection and a weakening of the labor market from mid-2024.
We expect a further and final rate hike in September; the rate peak should then be reached at 5.50%.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
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.
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 teletrade.org. 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 pr@teletrade.global.
Bank transfers
