Another week, another interest rate hike. That appears to be the case on Thursday, as the Bank of England prepares for what the market expects to be the twelfth consecutive rate hike.
If we substantiate the probability of futures prices, there is an almost 100% opinion in the markets that an increase of 25 basis points is coming. This would bring the rate from 4.25% to 4.5%, the latest increase in what has been the fastest increase cycle in history.
The Bank of England feels compelled. Inflation has skyrocketed globally over the past year, but it is particularly bad in the UK. The country announced last month that inflation is still in double digits, one of the highest in Western Europe.
