Credit Suisse raises its UK interest rate forecast by 25 basis points to 5%. UK inflation expectations rise to 7.2%.

[credit Suisse raises UK interest rate forecast by 25 basis points to 5% UK inflation expectations to 7.2%] May 24, Credit Suisse raised its forecast for UK interest rates after unexpectedly strong inflation data. The Bank of England is expected to raise its benchmark interest rate to 5% this year. "We now expect the Bank of England to raise interest rates two more times (in June and August), each by 25 basis points, compared with a previous increase and no rate cut in 2023," Credit Suisse economist Sonali Punhani wrote in a note to clients on Wednesday. "this is driven by an unexpected upturn in today's UK inflation data." She also raised her forecast for UK inflation this year to 7.2 per cent from 7 per cent.