Possible scenario
Half-Point Surprise
7%
−0.8%
The BOE surprises markets with a 50 basis-point increase, arguing that stronger growth and faster pay gains require a more forceful response. This would be a larger-than-expected macro adjustment, but still short of a crisis because it occurs within a scheduled policy meeting.
What it moves
- Utilities−1.3%
- Consumer Cyclicals−1.3%
- Riskier companies' borrowing costs
- Market volatility
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