📝Expect 100Bps BoE Rate Hike In November, 50Bps In December: ING

With markets pricing in another 300bp+ of tightening, the BoE has no good options. If it follows through on that, there’s a strong likelihood of housing market stress. Some price correction already looks inevitable with mortgage rates quickly climbing irrespective of BoE action. Under-delivery on rate hikes risks triggering further pound weakness at a time when the committee is already worried about inflation staying above target in the medium term. But that seems like the lesser of two evils. It’s a close call between 75bp and 100bp for November, but thereafter we expect the Bank to disappoint market expectations. - ING