U.S. and UK central banks will pursue tougher policies than expected – experts

Traders are inclined to believe that the Fed will start to raise rates at a higher rate than the market suggests. These conclusions are based on the regulator's statements made last week, which turned out to be rather hawkish. The likelihood of such a scenario is further bolstered by the fact that U.S. inflation has reached a 40-year high. Players believe the Fed will raise its key rate five times this year. Individual increases will be made by 25 basis points. Investors expect a more moderate policy from the Bank of England, but experts believe it will take its cue from the Fed. Goldman Sachs forecasts 3 key rate hikes by the British regulator, which would be the fastest tightening of monetary policy in 25 years. Other forecasts suggest that the U.K. prime rate could be raised by 1.5% this year, and that credit could rise by 1% by summer.