Somrat4030
Member
On the UK front, doubts over a December BoE rate rise has increased after cautious comments from BoE’s Saunders, who is typically seen as the most hawkish member of the MPC. The rate setter noted that there may be an advantage in waiting for more information on the Omicron variant before deciding to adjust policy settings. Additionally, Saunders stated that he sees a limited increase in the Bank Rate, which is in stark contrast to OIS markets pricing in near 1% interest rates by the end of 2022. In turn, the probability for a December rate hike fell from 50% to 30%, with scientific data on omicron seemingly another condition for a rate rise.