News & Feeds October 30, 2022

The next Bank of England rate hike may be smaller than you’re expecting

It’s been a wild ride for Bank of England (BoE) expectations since September’s fateful ‘mini budget’. The resulting chaos in financial markets had prompted investors to, at one point, price in more than 150bp worth of tightening by the time of the November meeting. BoE chief economist Huw Pill spoke of the need for a ‘significant’ response. Since then, UK markets have calmed, buoyed by the appointment of Rishi Sunak as prime minister and the steadier backdrop for public finances that is perceived to have ushered in. Markets have drastically scaled back expectations for November’s rate hike and are now