Pound plummets against euro as Bank of England stuns experts with interest rate decision | City & Business | Finance


Taking to Twitter financial expert Martin Lewis commented: ” It seems the market’s and the public view was not upheld by the Bank of England’s ratesetters.”

“Many happy mortgage holders out there. Many gutted savers.”

Despite interest rates holding for now with predictions of inflation set to rise well beyond target there are still warnings a further rate rise could come.

Hussain Mehdi, Macro and Investment Strategist, HSBC Asset Management said: “Nevertheless, a further increase in inflation in the coming months on the back of higher energy prices and the risk of rising wages will maintain pressure on the MPC to act.”

“A rate hike at the December meeting is possible. But with price pressures set to ease next year as supply-demand imbalances work themselves out, market expectations of a series of rate increases in 2022 look too aggressive to us.”

“Indeed, the bank’s latest forecasts, which incorporate this market pricing, now show inflation falling below target by the end of its forecast horizon.  Overall, this could still end up being the most dovish hiking cycle on record.”

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