Bank of America predicts one more hike from Bank of England and ECB

On Thursday (3 August), the BoE raised interest rates by 25bps to 5.25% on Thursday (3 August), the highest level since 2008. However, the central bank's narrative continued the shift beginning in its June guidance away from how many more hikes to "high for long".  In a research note, BofA analysts pointed out that the Bank added two sentences to its guidance. First, noting that policy is restrictive and second, that the central bank would hold policy restrictive for long enough to bring inflation down to its 2% target. Bank of England hikes rates by 25bps to 5.25% "These additions...