BoE Terminal Pricing Consolidates Above 6.30%

Little in the way of meaningful movement on the BoE-dated OIS strip, with terminal rate pricing consolidating above 6.30% and familiar degrees of tightening showing over the next few BoE meetings.

• Sainsbury’s provided some encouraging words re: the pace of food price inflation in the UK.
• Elsewhere, many continue to look to yesterday’s musings from incoming BoE MPC member Greene, who noted that “it would be a mistake for central bankers to take comfort in the notion that inflation and rates will automatically go back to the low levels we saw before the pandemic.” This came as part of a broader discussion surrounding r-star in her latest editorial piece in the FT.
• Final services PMI data headlines locally tomorrow, while the latest BoE decision maker panel data and the MPC speak cross in subsequent days.