Citi, J.P. Morgan bring forward BoE rate hike calls to Q1 2022
LONDON, Sept 23 (Reuters) - U.S. banks Citi and J.P. Morgan on Thursday brought forward their forecasts for a Bank of England rate hike to early next year after the central bank said the case for higher borrowing costs "appeared to have strengthened".
Citi said the BoE was now likely to raise interest rates to 0.25% from 0.1% in February 2022, and increase rates again to 0.5% in May 2022.
J.P. Morgan said the language employed in today's policy minutes seemed to be designed to strengthen expectations for a hike in February, and forecast a first rate rise for Q1 2022 and a second rate rise to 0.5% for Q3 2022.
Interest rate futures current show a roughly 90% chance of a 15 basis point hike for the February meeting, and a second rate rise by the end of 2022. (Reporting by Andy Bruce, editing by David Milliken)
