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BoE Strip Steepening Extends Post-US PPI, Tier 1 UK Data Due Next Week

STIR

The steepening of the BoE-dated OIS strip extends on the back of the U.S. PPI data.

  • That leaves ~22bp of tightening showing for next month’s meeting, while terminal policy rate pricing sits a little above 5.80%.
  • Local headline flow has been light since this morning’s firmer than expected domestic GDP data.
  • Next week brings plenty of domestic risk events, with monthly inflation, labour market and retail sales data all due.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Sep-235.402+21.9
Nov-235.562+37.9
Dec-235.675+49.2
Feb-245.732+55.0
Mar-245.745+56.2
May-245.724+54.1
Jun-245.681+49.8
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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