BoE to deliver a more “forceful” interest rate hike

The further strengthening in domestic inflationary pressures and exceptional tightness in the labour market suggests there is a strong case for the Monetary Policy Committee (MPC) to opt for an aggressive interest rate hike at its next policy meeting on Thursday 3^rd November. It’s a close call as to whether the MPC will deliver a 75 basis point (bps) or an 100bps hike. On balance, we think that the MPC will go for 100bps, taking Bank Rate from 2.25% to 3.25%.