BoE rate hike should have been higher
MARKET VOICE
After the UK base rate hike on May 10, many people will be expecting another 0.25% rise. But a bigger-than-expected 0.50% rise would have been more effective than this incremental approach in reducing inflationary pressures.
The Retail Price Index, which I view as the most indicative measure of inflationary pressures, is running at approximately 4.8%. This has been driven up by price rises in gas and electricity and other non-discretionary items, which in turn drove households' inflation
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