BOE’s Broadbent: It is an open question on whether there will be more rate hikes

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  • There are clear signs that rate hikes are having an impact
  • But perhaps it may be that the effect is weaker than in the past or still delayed
  • Sees UK inflation reaching target in 2 years‘ time

The BOE is in a rather unenviable spot right now. They are starting to move to the sidelines but are worried that they may not have done enough in the inflation fight. Adding to that is a worsening economy amid the rise in recession risks and further tightening could risk a hard landing going into next year.

This article was written by Justin Low at www.forexlive.com.

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