FXStreet (Edinburgh) – Analyst Carlijn Prins at Rabobank believes the ‘Old Lady’ could start its hiking cycle in May of next year.
Key Quotes
“Like all other central banks, the BoE will be carefully evaluating the impact of China’s economic slowdown and increased market volatility on the UK economy”.
“While these factors could be sufficient to steady the hands of some of the MPC hawks in the next couple of months, it seems possible that three members of the committee could be voting for an immediate rate hike by the end of the year”.
“That said, last month the BoE revised down its inflation forecasts and, in view of weak commodity prices, it could still be some time before CPI inflation returns to the Bank’s 2% target”.
“Governor Carney has stressed that the timing of the central bank’s first move will begin to come into focus around the end of the year but, as fundamentals currently present themselves, we do not expect a majority vote in favour of a rate hike until May 2016”.
Analyst Carlijn Prins at Rabobank believes the ‘Old Lady’ could start its hiking cycle in May of next year…
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