JPMorgan: Bank of England expected to raise interest rates to 4.25% by first quarter of 2023

JPMorgan analysts believe the Bank of England will raise interest rates to 4.25% in the first quarter of next year. In addition, analysts also said that UK fiscal policy will tighten with a lag, while monetary policy “will take longer than in the past to work”.

The UK economy is expected to contract in 2023, with GDP falling by 0.6% (compared with an expected 4.3% in 2022), due to tightening monetary and fiscal policies, as well as economic damage from the pandemic and Brexit.