A Reuters survey shows that the Bank of England is expected to raise interest rates before the end of 2022, earlier than previously estimated, and as the economy recovers steadily from the impact of the epidemic and there is high inflation, the time to raise interest rates may be even longer. in advance.
Like other central banks around the world, the Bank of England cut interest rates at the worst of the epidemic and resumed quantitative easing measures. But with the widespread promotion of vaccination, the daily death toll has fallen, and most of life in the UK has returned to normal.
According to a survey conducted on September 6-9, the Bank of England is expected to raise interest rates from the current record low of 0.10% to 0.25% in the fourth quarter of 2022. The August survey showed that interest rates are expected to remain unchanged until 2023.
If the forecast is accurate, then the Bank of England will be ahead of the Federal Reserve (Federal Reserve/FED) in raising interest rates. According to another Reuters survey, the Fed is not expected to raise interest rates until 2023, although it is expected to announce plans to reduce asset purchases this month.
“Although the uncertainty of the new crown epidemic is still lingering, and the global supply side is severely chaotic, it will temporarily suppress actual output growth, but as part of the overall developed world theme, the overall situation in the UK is undoubtedly positive,” Bei Kallum Pickering of Lemberg Bank said.
“The fundamentals are healthy, coupled with renewed confidence in the ability of policymakers to stimulate demand, will ensure this.”