Central Banks Signal More Rate Hikes as BOE Seen Pushing Borrowing Costs to 5%
Updated
Updated · Bloomberg · Nov 14
Central Banks Signal More Rate Hikes as BOE Seen Pushing Borrowing Costs to 5%
3 articles · Updated · Bloomberg · Nov 14
Summary
Policymakers from the UK, US and eurozone used a London gathering to lay the groundwork for further interest-rate increases, prompting traders to raise bets on more tightening before year-end.
A hotter-than-expected US inflation reading reinforced officials' concern that price pressures remain sticky even after energy prices fell this month.
In the UK, a leading think tank warned the Bank of England may need to lift borrowing costs to 5%, extending a hawkish message already echoed by BOE chief economist Huw Pill.
The signals point to a broader shift toward keeping policy tighter for longer across major economies as inflation proves harder to tame.