State Street’s Graf Says Market Too Hawkish on UK Rates Path
- BOE is behind curve, market pricing is ‘off-the-charts’ crazy
- Graf sees neutral interest rate at 2.5% compared with 5% now
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The Bank of England needs to cut rates more aggressively than markets are pricing, given the nation’s economic woes and faster easing at other major central banks, said Tim Graf, head of EMEA macro strategy at State Street Global Markets.
Sticky underlying inflation gauges mean the BOE is expected to take a cautious approach and keep rates on hold at 5% on Thursday.