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BoE Terminal Pricing Up 10bp On Strong Wage Data, US CPI

STIR

BoE rate hike expectations have risen 10bp today to a terminal Bank Rate of 4.65% by September. That's the highest that September pricing has been since Jan 6th.

  • A 25bp hike in March is 100% priced; a second 25bp hike in May is just over 70% priced.
  • The repricing has come alongside a firming of US rate hike expectations after the Jan CPI data, and of course strong UK wage growth data out this morning.

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