BoE Preview: Maintain our forecast of a 75 bps hike – Societe Generale

FX

Analysts at Societe Generale provide a sneak peek at what they expect from the Bank of England’s (BoE) ‘Super Thursday’.

Also read: BoE Interest Rate Decision Preview: A close call between 50 bps and 75 bps, GBP/USD set to suffer

Key quotes

“We maintain our forecast of a 75 bps hike on the way to a peak of 4.5% at the March 2023 meeting.“

“Now that the markets have settled down and pension funds seem to have weathered their collateral problems after the Bank’s successful intervention, it looks likely that active gilt sales will commence, as twice rescheduled, on 1 November.”

“The revised plan excludes sales at the long end because of the impact of the pension fund issue on that part of the curve.”

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