UK Economist: BOE Monetary Policy Committee Expected to Hike Bank Rate by 50bps at August Meeting

UK economists at Goldman Sachs expect the Bank of England‘s Monetary Policy Committee (MPC) to raise bank rates by 50 basis points at its August meeting.
Goldman Sachs predicts that the Bank of England will raise interest rates to a peak of 6% in November this year.
Goldman Sachs said the Bank of England would have to continue to tighten monetary policy, subject to firm wage pressures and inflationary pressures.
In the UK, where most are fixed-rate mortgages, Goldman’s modeling shows that the stock of outstanding mortgages responds more slowly to changes in policy rates.
This delayed output adjustment puts upward pressure on the BoE’s policy path.