BoE: The policy rate is seen at 4.25% by year-end – UOB

Economist at UOB Group Lee Sue Ann sees the BoE rising the policy rate to 4.25% by end of 2022.

Key Takeaways

“In a dramatic policy U-turn, the BOE resumed gilt purchases end-Sep. Meanwhile, Rishi Sunak’s appointment as PM was greeted by a relief rally in UK gilts. Yet, the BOE has little choice now but to hike more aggressively.”

“We are expecting interest rates in the UK to be higher for longer, now looking for the BOE to increase rates to 4.25% by year-end.”