Reuters polled analysts and concluded that the Bank of England will raise interest rates by a modest 25 basis points in June and maintain those increments in future sessions, despite inflation nearing double digits.
The economy unexpectedly shrank 0.3% in April, according to official figures.
But even with the threat of recession, the Bank of England still looks set to take Bank Rate 25 basis points higher by year-end than thought just one month ago.
Its pace of rate rises remains significantly slower than its peers, including the U.S. Federal Reserve and the Bank of Canada. Interest rate futures see Bank rates ending the year closer to where economists say the U.S. fed funds rate will be, around 2.50-2.75%.
Only one contributor, Capital Economics, expected an aggressive 50 basis point BoE rate rise in June. 19 of 22 economists said Bank Rate was more likely to end the year higher than they currently expect.
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