The results of the latest Bloomberg survey of 41 economists showed that more-than 5-% of them believe the BOE could hike rates by 25bps in May.

Key Findings:

21 of 41 economists are predicting a 25 bps rate hike by the BOE in its May meeting.

Another 8 economists see the BOE moving in August instead.

Meanwhile, the median estimate for a second rate hike will be in February next year – which is much faster than what the market is currently pricing in.

OIS market currently has about a 64% probability of a rate hike priced in for May – as investors are anticipating that two hikes to only be fully priced in by May 2019.

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