UK Rate Hikes Hurting Business and May Be Near Peak, IOD Says
- Lobby’s chief economist says market pricing in too many hikes
- Remarks follow BOE hike of key lending rate to 5.25%
Protests against the Bank of England's approach to fighting inflation outside the bank's headquarters.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Bank of England’s longest series of interest rate increases in three decades is starting to hurt businesses, an indication that policy makers may not have much more to do to rein in inflation, one of the UK’s main industry lobby groups said.
Kitty Ussher, chief economist at the Institute of Directors, said rates may peak “lower than the market is expecting.” Investors are pricing in at least two more quarter-point increases in the base rate, which the BOE boosted to a 15-year high of 5.25% on Thursday.