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

LONDON (Reuters) – 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.”

(Writing by William Schomberg; editing by William James)