Have interest rates peaked in the UK?
Over the last few years, the Bank of England (BoE) has been viewed as more tolerant of inflation in comparison to other developed market central banks. Despite being one of the first advanced economy central banks to hike rates in the most recent cycle, the gradualist approach of the Monetary Policy Committee (MPC) in slowly raising rates, differed from the US Federal Reserve and the European Central Bank that both frontloaded their monetary policy tightening (see Chart 1).
