After Bank of England governor Mark Carney’s statement last month that a rate hike was probably coming sooner than expected, despite a unanimous vote to keep the benchmark rate at 0.5%, the market has been preparing for a change by the end of the year. The question for investors is how much the expected hike has already been priced in to rate sensitive stocks. “Investors are increasingly focusing on the prospect of a UK interest rate hike, as witnessed by higher 2Y gilt yields, rising interest rate expectations and stronger GBP,” write Morgan Stanley analysts Graham Secker and Hanyi Lim….