Deutsche Bank analyst warns Bank of England to raise rates

Sat, 09 Dec 2023

Deutsche Bank analyst warns Bank of England to raise rates

Robert Besser
28 Sep 2022, 17:11 GMT+10

Deutsche Bank analyst George Saravelos said the Bank of England must raise interest rates as early as next week to calm markets and restore credibility
After UK finance minister Kwasi Kwarteng announced major tax cuts funded by public borrowing, UK bond yields surged to the highest single day increase in more than three decades
The pound dropped 3 percent to a new 37-year low

FRANKFURT, Germany: Deutsche Bank analyst George Saravelos said the Bank of England must raise interest rates as early as next week to calm markets and restore credibility.

After UK finance minister Kwasi Kwarteng announced major tax cuts funded by public borrowing, UK bond yields surged to the highest single day increase in more than three decades, and the pound dropped 3 percent to a new 37-year low.

"A large, inter-meeting rate hike from the Bank of England as soon as next week to regain credibility with the market" was needed, Saravelos stressed in a research note, adding that a decision by the central bank to reverse its planned sale of UK government bonds would worsen matters.

The bank must send a strong signal that it was willing to do "whatever it takes" to bring inflation down quickly and move real yields into positive territory, he said.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Buffalo Breeze.

More Information

51 ℉

Cloudy in Buffalo

Business

Section

U.S. stock markets and dollar jump on employment report

NEW YORK, New York - A positive employment report from the U.S. Bureau of Labor Statistics indicating a fall in ...

By 2026, AT&T to use ORAN technology for 70% of U.S. wireless network

DALLAS, Texas: This week, AT&T said that by late 2026, it will use open radio access network (ORAN) technology for ...

Moody's warns of downgrade in China's credit outlook

NEW YORK: This week, ratings agency Moody's warned that it could downgrade China's credit rating, citing costs to bail out ...

Artificial intelligence stocks all the rage on Wall Street

NEW YORK, New York - AI set the scene for solid gains in technology shares on Thursday. Demand for Alphabet ...

To reduce car-wildlife collisions US allots $110 million to 17 states

WASHINGTON D.C.: To help reduce car collisions with wildlife and help animals safely cross roadways, the U.S. Transportation Department has ...

European Commission to upgrade EU countries' EV power grids

BRUSSELS, Belgium: To address power shortages at electric vehicle (EV) charging stations, last week, the European Commission announced plans to ...

United States

Section

Feature: Chinese-built power plant light of hope for war-torn Iraq

© Provided by Xinhua "Iraq has been facing a major problem in providing electricity to its citizens. The Wasit Power ...

EU lawmakers agree on artificial intelligence laws

Washington DC [US], December 9 (ANI): European Union lawmakers on Friday agreed to one of the world's first major comprehensive ...

Oregon finding ways to win amid injuries with UTEP up next

(Photo credit: Chris Pietsch/The Register Guard / USA TODAY NETWORK) Oregon will play just its third game in two weeks ...

Islanders look to spoil King's record-setting road streak

(Photo credit: Eric Bolte-USA TODAY Sports) The New York Islanders did something Thursday night they hadn't accomplished during their first ...

Braves acquire INF David Fletcher, C Max Stassi from Angels

(Photo credit: Gary A. Vasquez-USA TODAY Sports) The Atlanta Braves landed infielder David Fletcher and catcher Max Stassi on Friday ...

MLS commish Don Garber: Messi effect 'cannot be overstated'

(Photo credit: Kareem Elgazzar/The Enquirer / USA TODAY NETWORK) Commissioner Don Garber hailed 2023 as "the most successful season" in ...

Movie Review

Journey to the Beginning of Time (Cesta do praveku)