Deutsche Bank anticipates a 50-bps. Bank of England rate increase in August

London At its meeting in August, the Bank of England is now expected to raise interest rates by a half-percentage point, according to Deutsche Bank (ETR:DBKGn).

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A crucial indicator of British salaries climbed at the joint fastest rate in history, according to data provided earlier in the day.

“For now, evidence of still more persistent wage pressures will keep the MPC’s foot on the accelerator,” Deutsche wrote in a note, referring to the BoE’s rate-setting committee.

“A second straight 50-bp increase now appears more likely than not. As a result, we alter our prediction for August and anticipate a 50-bp increase at the following BoE meeting, bringing the Bank Rate to 5.5%.

Analysts at Deutsche stated they would maintain a fixed terminal rate prediction of 5.75%.