Barclays strategists suggest narrowing the gap between the Bank of England's policy interest rate and the ECB deposit interest rate in December. They expect the Bank of England to raise interest rates less than the ECB this year. Fixed-income strategists, including Moyeen Islam and Rohan Khanna, wrote in a report on Thursday, “If the US and Iran resume negotiations and energy prices fall back, we think the market will lower expectations for the Bank of England's interest rate hike faster than the ECB because the Bank of England is more cautious in terms of economic growth and labor market risks.” The money market currently anticipates that by the end of December, the Bank of England will raise interest rates by a total of 37 basis points, and the ECB will raise interest rates by 41 basis points. Barclays economists expect the ECB to raise interest rates again, while the Bank of England will keep interest rates unchanged.

Barclays strategists suggest narrowing the gap between the Bank of England's policy interest rate and the ECB deposit interest rate in December. They expect the Bank of England to raise interest rates less than the ECB this year. Fixed-income strategists, including Moyeen Islam and Rohan Khanna, wrote in a report on Thursday, “If the US and Iran resume negotiations and energy prices fall back, we think the market will lower expectations for the Bank of England's interest rate hike faster than the ECB because the Bank of England is more cautious in terms of economic growth and labor market risks.” The money market currently anticipates that by the end of December, the Bank of England will raise interest rates by a total of 37 basis points, and the ECB will raise interest rates by 41 basis points. Barclays economists expect the ECB to raise interest rates again, while the Bank of England will keep interest rates unchanged.