J.P. Morgan Delays BoE Rate Hike Call to November as Bank Holds at 3.75%
Updated
Updated · Reuters · Jun 18
J.P. Morgan Delays BoE Rate Hike Call to November as Bank Holds at 3.75%
3 articles · Updated · Reuters · Jun 18
Summary
J.P. Morgan shifted its forecast for the Bank of England’s next rate increase to November from July after the BoE left borrowing costs unchanged at 3.75%.
The bank cited lingering inflation uncertainty tied to Middle East tensions, even after a U.S.-Iran truce, with Governor Andrew Bailey saying he was encouraged by the deal but not convinced inflation pressures would fade.
J.P. Morgan said a second-half pickup in growth and the labor market, alongside firmer inflation, could feed through more strongly into core prices and wages.
The revised call comes as other major central banks turn more hawkish: the Bank of Japan and ECB have raised rates in the past week, and Federal Reserve projections still point to higher U.S. borrowing costs this year.