Citi says it expects BoE to pause after one more rate hike

U.S. bank Citi said it expected the Bank of England to halt its run of interest rate increases after a hike on Thursday, although there was an outside chance of a pause this week.

“With the agenda moving quickly, we think 1) a pause should not be dismissed; and 2) this week’s move is probably the last,” Citi said in a note to clients shared with media on Monday.

“We now look for no change in November, with a full set of forecasts plausibly providing a basis to pause. We continue to see cuts from May 2024.”