BNP Paribas' Mutkin Doesn't See BOE Rate Hike on Horizon

The video discusses the potential for interest rate hikes by the Bank of England, considering the votes of board members like Kristen Forbes, Sanders, and McAfee. Despite some hawkish members, the expectation for a rate hike is low, with predictions suggesting no increase until 2019. The UK economy has shown resilience post-Brexit, but wage growth is sluggish, and inflation is rising. The discussion also covers UK real rates, which are edging higher, indicating the market's expectation for negative real policy rates to continue for several years. The bond market's view is challenged by rising inflation and potential data changes.

What factors are influencing the Bank of England's decision on interest rates?

What is the current market expectation regarding interest rate hikes?

How has the Brexit vote affected the Bank of England's economic outlook?

Discuss the implications of real rates moving higher in the UK.

What does the market expect regarding the Bank of England's policy rates in the next five years?