City traders may be sure another rate rise is on the cards at the next monetary policy committee meeting tomorrow, but Virgin Money UK isn’t banking on it.
An upgrade to margin guidance to around 1.75 per cent for this year, from the 1.70 per cent previously anticipated, doesn’t account for any further rate rises, so a more hawkish policy approach could provide a tailwind in the coming months.
The net interest margin, the difference between what the bank pays out on customer deposits and what it earns on loans, rose to 1.77 per cent in the final three months of last year, from 1.70 per cent in the prior quarter. Analysts at Shore Capital reckon the more bullish guidance will add £42 million to
