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CommentAugust 9 2023

What is shaping the outlook for UK interest rates?

Following the Bank of England’s most recent interest rate hike, Michael Saunders examines how far we can expect rates to rise, and how long they will stay there.
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What is shaping the outlook for UK interest rates?Image: Getty Images

The long tightening cycle by the Bank of England’s Monetary Policy Committee (MPC) is probably near its end. I expect a final 25 basis point hike at the September meeting. But the MPC will be slow to cut rates – slower than the US Federal Reserve and the European Central Bank.

Three themes shape the outlook. 

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