JP Morgan are forecasting another 75bp of Bank of England rate hikes

<p>Earlier on revisions to BoE rate hike forecasts:</p><ul><li><a href="https://www.forexlive.com/centralbank/goldman-sachs-now-sees-50-bps-bank-of-england-hike-in-august-20230622/" target="_blank" rel="follow" data-article-link="true">Goldman Sachs now sees 50 bps Bank of England hike in August</a></li><li>Goldman Sachs expects a 50 bps hike in August and a final 0.25% hike in September</li></ul><p>JP Morgan have a variation on this forecast:</p><ul><li>raised their terminal rate forecast for the Bank of England to 5.75%</li><li>forecasting a +25bp hike in August with another two to follow</li><li> “The ‘boiling the frog’ scenario we envision whereby resilient growth and sticky inflation gradually raises terminal rates is playing to script"</li><li>Even if inflation stops surprising the BoE will put greater emphasis on the need to halt the wage-price spiral</li><li>"This new policy rate level in our forecast recognizes that there is a dynamic between wages and prices that needs to be stopped, and assumes the BoE will need to hike further in order to trigger a significant weakening in the labour market"</li></ul><p>On Thursday:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-european-fx-news-wrap-boe-surprises-with-50-bps-rate-hike-20230622/" target="_blank" rel="follow" data-article-link="true">ForexLive European FX news wrap: BOE surprises with 50 bps rate hike</a></li></ul><p>3 August then 21 September are the next Bank of England meetings</p>

This article was written by Eamonn Sheridan at www.forexlive.com.