BoE needs to raise rates next week to calm markets: Deutsche Bank analyst

British government bond yields posted their biggest one-day rise in more than three decades on Friday, while sterling fell 3% to a new – The record low for the year came after UK finance minister Kvassey Kwarten proposed a series of major tax cuts to be funded by public borrowing. In a research note, Deutsche Bank’s George Saravelos said the required policy response was clear: “The Bank of England will Zhou hiked rates sharply between meetings to regain market trust.”

He said the Bank of England’s decision to withdraw its planned sale of UK government bonds would make matters worse. He added that the Bank of England has sent a strong signal that it is willing to “do whatever it takes” to bring down inflation quickly and bring real gains rate pushes into positive territory, which will help.