HSBC has predicted that the Bank of England will not cut interest rates until April amid growing inflation fears.
Experts at the banking giant said price rises were proving ‘more acute than in other Western economies’ and that rate-setters were showing signs of a ‘hawkish’ shift.
A delay in the path of rate cuts would come as a blow to millions of borrowers.
Labour’s National Insurance hike has helped push inflation up to 3.8 per cent – an 18-month high and the most severe level among the G7 group of advanced economies, too. It is expected to climb further to 4 per cent later this year.
Last week, Bank of England governor Andrew Bailey said there was ‘considerably more doubt’ about when further cuts would be made.
HSBC said: ‘Having adopted a “careful and gradual” approach to policy easing, we now think the BoE will pause its rate cuts until next April.’
Rates blow: Experts at HSBC said price rises in the UK were proving ‘more acute than in other Western economies’ and rate-setters were showing signs of a ‘hawkish’ shift
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