Bank of Canada: Bank of England May Be More Concerned About Economic Growth Risks Than Inflation

Mark Dowding, Chief Investment Officer at Royal Bank of Canada’s BlueBay Asset Management, has stated in a report that the Bank of England might be prioritizing the downside risks to economic growth rather than the continued risk of inflation overshooting. Dowding predicts that UK interest rates could peak around 5.5% to 5.75%, with the current rate standing at 5.25%.

According to Refinitiv data, the market’s expectation for the peak of Bank of England interest rates is 5.80%, and there is a likelihood of over 90% that the Bank of England might raise rates by 25 basis points in September.