BoE Preview: Bank will opt for further hikes in the first half of 2023 – Goldman Sachs

Gurpreet Gill, Macro Strategist, Global Fixed Income, Goldman Sachs Asset Management, expresses his view on the likely Bank of England (BoE) monetary policy announcements.

Key quotes

“Wage growth, a key determinant of services inflation, is around 6%, double the level estimated to be consistent with the Bank's 2% inflation target.”

“Broad-based inflationary pressures however mean the Bank is unlikely to pause its hiking cycle too soon.”

“The bank will opt for further hikes in the first half of 2023 until inflation shows less momentum.”