The Bank of England could still deliver an unexpected interest rate increase, according to a UK markets briefing from Morningstar published Monday. The same briefing notes that Amazon has joined what it describes as a bond boom.
Morningstar's assessment follows reporting from other outlets pointing to shifting expectations around UK monetary policy. The Financial Times reported that a surge in oil prices has revived the prospect of a Bank of England rate rise this year. The Times said the central bank faces a crucial rate decision following a bond sell-off.
Against that backdrop, several outlets expect the Bank of England to leave its key rate unchanged at the upcoming meeting. The Wall Street Journal reported that the Bank is expected to hold its key rate and slow the pace of quantitative tightening. Reuters likewise reported that the Bank of England is set to hold rates steady and slow QT.
