Bank of England will hike this year despite low inflation, as inflation is expected to pick up when the base effects from the drop in food and energy prices fade. Wage growth is likely to pick up further this year in step with the decline in labour market slack. “We have moved the first BoE rate hike three months forward from Aug 2015 to Nov 2015. The main reasons behind our new call are that we have pushed our call for the first Fed hike to Sept, the appreciation of the GBP in recent months and slower growth in Q1 15.” said Danske Bank
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