19 Feb 2015
UK rate hike points to Q3 or Q4 – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank see the BoE commencing its hiking cycle towards the third quarter of the present year, backed by the solid performance of the UK economy.
Key Quotes
“Fundamentally, the UK economy is expected to continue to recover at a solid pace and we still look for the first hike to arrive in August– but stress that risks are tilted towards a hike later in Q3 or possibly in Q4”.
“If we are correct, the BoE is priced much too dovishly and we see more upside potential in UK rates and look for a lower EUR/GBP in the coming three to six months as markets call for a re-pricing of MPC policy in a more hawkish direction”.
Key Quotes
“Fundamentally, the UK economy is expected to continue to recover at a solid pace and we still look for the first hike to arrive in August– but stress that risks are tilted towards a hike later in Q3 or possibly in Q4”.
“If we are correct, the BoE is priced much too dovishly and we see more upside potential in UK rates and look for a lower EUR/GBP in the coming three to six months as markets call for a re-pricing of MPC policy in a more hawkish direction”.