BoE could hike before year-end – ING

FXStreet (Edinburgh) - Analyst at ING Bank James Knightley believes its possible that the BoE could hike rates towards year-end.

Key Quotes

“The fact that inflation is so low has meant that the two hawks on the MPC, Ian McCafferty and Martin Weale, dropped their calls for a 25bp rate rise, so we have pushed back the start point for BoE policy tightening to November”.

“However, with the BoE citing potential upside medium-term inflation risks from the strength in domestic demand and the stimulative effect of lower oil prices, we still think a rate hike is possible before year-end”.