Schroders predicts rate hikes in December and February

Prediction change follows high inflation numbers yesterday

Following the announcement that inflation had reached 4.2% yesterday, Schroders has changed its forecast for the Bank of England, predicting a rate hike next month.

Schroders senior European economist Azad Zangana said today (18 November) that the BoE will increase rates to 0.25% on 16 December, then again to 0.50% in February 2022. Schroders also predicts further increases to take place in 2023. Zangana said that while Schroders believed the November hold had been the right decision, "this week's labour market statistics release has revealed a much stronger environment, and so we have changed our call". He cited three reasons for the changing prediction, with "stronger than expected labour market data published this week" as the main reason, due...