BOE to keep rate hike talk alive - Rabobank

Jane Foley, Senior Foreign Exchange Strategist at Rabobank expects the Bank of England (BOE) to keep the rate hike speculation alive via hawkish talk every now and then as the central bank would want to keep a lid on Sterling-led rise in the imported inflation. “The outlook for Sterling is still heavily dependent on politics”, says Foley.

Why is the BOE reluctant to raise rates? Is it due to the fact that the inflation is due to cost push factors? Is the rise in the cost push inflation as well as a tax hike/rate hike/policy tightening?

Listen to Jane Foley talk about cost push inflation, second round effects and limits to BOE’s inflation tolerance. Also discussed is the Trumpflation and outlook for US dollar and EUR.

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