WS #16683
The Bank of England is widely expected to raise interest rates by 25 basis points to 4% on Thursday, with desk pricing suggesting over 100bps of hikes are considered extreme. This move reflects persistent inflation pressures and supports the bullish case for UK financials while adding headwinds to high-multiple growth stocks and real estate investment trusts. The hike is seen as a necessary but potentially growth-dampening step, contributing to global macro uncertainty.
BoE Rate Hike Expectations
The Bank of England is widely expected to raise interest rates by 25 basis points to 4% on Thursday, with desk pricing suggesting over 100bps of hikes are considered extreme. This move reflects persistent inflation pressures and supports the bullish case for UK financials while adding headwinds to high-multiple growth stocks and real estate investment trusts. The hike is seen as a necessary but potentially growth-dampening step, contributing to global macro uncertainty.