It has been suggested by HSBC, who is one of the UK’s “big four” banks, said Monday morning, they think the Bank of England will be raising interest rates twice, within the next year.
HSBC said that they expect rates to be raised by 25 points, possibly starting from November this year, going up to 0.75 per cent.
Last week the monetary policy committee (MPC) voted to keep interest rates at 0.25 per cent however, they have hinted this could rise.
Elizabeth Martins, an economist for HSBC said in her note, Monday: “The Bank of England’s MPC minutes in September were hawkish, but the subsequent comments from former doves Mark Carney and Jan Vlieghe appear to have sealed the deal.
“We think the bank is clearly signalling it intends to raise rates in November.
“We now expect a 25bp rise in that meeting, followed by another in May 2018, taking the bank rate to 0.75 per cent. Previously, we had expected no change in rates this year or next.”
David Bloom the global head of currency research at HSBC, said: “The Bank of England’s unexpected hunger to join other G10 central banks in the race to the exit from accommodative monetary policy has given additional impetus to sterling, a currency that has happily ignored the political intrigue of Brexit throughout 2017.”