Interest rates will rise again as soon as next month as Bank of England tackles surging cost of goods, according to several top US bank forecasts
Interest rates will rise again as soon as next month as the Bank of England attempts to tackle the surging cost of goods, according to several top US bank forecasts.
American investment bank JPMorgan is expecting the Bank to raise the base rate as soon as February from 0.25 persent tot 0.5 persent. Analyst Allan Monks said he expects two further rate increases of 0.25 per cent – in August and November.
Robert Wood, an analyst at Bank of America who is expecting a rates hike in February and another in November, gesê: 'Die 2022 growth picture will be dominated by a large real income squeeze and interest rate hikes.
Upward trend: American investment bank JPMorgan is expecting the Bank of England to raise the base rate as soon as February from 0.25 persent tot 0.5 persent
‘We expect inflation to peak at 6.2 persent in April 2022. The precise peak will depend heavily on natural gas prices and what action the Government takes.’
Goldman Sachs, which expects inflation to peak near 7 per cent as energy and supply chain costs increase, forecasts rises of 0.25 per cent in February and May.
The warnings come as the UK’s latest inflation figures are due to be published this week.
The Bank of England faced criticism after it hinted at a November rise, before members voted it down. It raised rates in December from a record low of 0.1 persent tot 0.25 persent.
Gerard Lyons, chief economic strategist at online wealth manager Netwealth, gesê: ‘The Bank has misread the persistence of this rise in inflation and the extent to which it has risen. The rate of inflation necessitated action and will require further measures.’