An unexpected rate hike was announced at the British and Central Bank’s monetary policy meeting last week. In response to this, expectations for an additional rate hike next year are emerging in the current market. In the money market, the interest rate level in February is 0.405% and that in March is 0516%. It is expected that interest rates will be raised by 0.25% at the February or March meeting.
The Bank of England has said that if the policy interest rate reaches 0.50%, it will stop reinvesting due to the redemption of asset purchases, and it is expected to further normalize.
However, depending on the infection of the Omicron strain during the year-end and New Year holidays, the market outlook may fluctuate. Money market weaving is still in flux.
It seems that buying is gathering at GBP today.
